Meituan looks to raise US$3.96 billion in Hong Kong IPO
Major online provider will release 480 million class B shares on September 7, from HK$60 to HK$70 per share
Meituan-Dianping, a Chinese online services provider, is hoping to raise as much as HK$31.12 billion (US$3.96 billion) by selling shares in Hong Kong, The Paper reported.
Meituan-Dianping will release about 480 million class B shares around the world on September 7, with a price ranging from HK$60 to HK$70 per share. Then on September 20, the company will be officially listed in Hong Kong.
The app has since grown into a one-stop shop for online services, a place where people can order food delivery, buy movie tickets, book vacations or hail a car ride.
Wang Jing, the founder and CEO of Meituan-Dianping, said that on average, one out of every four Chinese people spent money on the platform, and it has become the largest food delivery platform in China.
Wang believes that the overall catering market size will reach 8.7 trillion yuan and will continue to grow in the future. Thus, the company will continue to attract and retain mainly users through “food.”
The company has also decided to halt further expansion into China’s ride-hailing market — instead, it will mainly invest in “food” related business.