Sep 13, 2018 (China Knowledge) - Tencent-backed Meituan Dianping, the Chinese e-commerce consumer discretionary platform, has raised proceeds of USD 4.2 billion after pricing its Hong Kong initial public offering (IPO) towards the higher end of the range, according to people with information of the matter.
Meituan priced 480.27 million new Class B shares at HKD 69 each, according to the people as information is still private. In its prospectus, the shares were previously advertised at HKD 60 to HKD 72 each.
Meituan’s IPO is said to attract investments from Li Ka-Shing, Hong Kong’s richest man, as well as Thomas Lau from Lifestyle International Holdings Ltd. The company, which is backed by Tencent Holdings Ltd., plans to begin trading from Sept. 20, according to its IPO prospectus. Other cornerstone investors include New York’s Oppenheimer Holdings Inc, and hedge funds Darsana Capital Partners LP and Landsdowne.
According to the company’s prospectus, Meituan has achieved significant growth. Their business model focusses on mass-market, essential and high frequency services and had become a market leader in those core categories. They generate revenues from commissions, online marketing, services and sales.
Goldman Sachs Group Inc., Morgan Stanley and Bank of America Corp. are joint sponsors for the IPO, while China Renaissance Holdings Ltd. is sole financial adviser, outline the prospectus.
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