Meituan Dianping has set an indicative price range of HK$60 to HK$72 for its Hong Kong initial public offering, valuing itself at up to US$55 billion, Reuters reports, citing people with knowledge of the matter.
The Chinese online food delivery-to-ticketing services platform could raise as much as US$4 billion in the IPO before the exercise of a “greenshoe” or over-allotment option, according to the report.
Meituan Dianping is discussing a valuation of US$46 billion to US$55 billion and is planning to secure a total of US$1.5 billion from five cornerstone investors, including its main backer Tencent Holdings, and global asset manager Oppenheimer Funds, sources were quoted as saying.
Oppenheimer is expected to commit US$500 million while Tencent will take up US$400 million worth of shares.
Other cornerstone investors include UK-based hedge fund Lansdowne Partners (US$300 million), US hedge fund Darsana Master Fund (US$200 million) and Chinese state-owned conglomerate China Chengtong Holdings Group (US$100 million), according to the report.
Meituan Dianping plans to use the IPO proceeds to upgrade its technology, develop new services and products and pursue acquisitions among other things.
Meituan was valued at around US$30 billion in a fundraising round late last year.
Founded in 2010 by serial entrepreneur Wang Xing, it completed a US$15 billion merger with Dianping, a Yelp-like entity, in 2015.
The company offers a broad range of services including movie ticketing, food delivery, hotel and travel booking as well as ride-hailing.
– Contact us at [email protected]