Chinese online group discounter Pinduoduo Inc. has quoted its initial US public offering at US $ 19 per US depository share (ADS), raising US $ 1.63 billion in the second largest US float this year. year. , according to two people familiar with the situation
The Pinduoduo logo is seen in this illustration photo taken on July 17, 2018. REUTERS / Thomas White / Illustration
HONG KONG (Reuters / IFR) – The discounter of Chinese online group Pinduoduo Inc. has evaluated its initial public offering in the United States (IPO)) to US $ 19 per US Depositary Share (ADS), raising 1 , 63 billion US dollars in the second largest US float by a Chinese company this year, according to two people familiar with the situation.
Prices Evaluate Money Losing Pinduoduo – Which Counts Chinese Internet Giant Tencent Holdings Ltd As Main Support – To 23.8 Billion US Dollars, Including All Stock Options outstanding, compared to a US $ 15 billion valuation following a round of financing in April.
This fast-growing company allows consumers to bundle better discounts from merchants who sell products as diverse as clothing, cookware and gadgets. It offered approximately 85.6 million ADS, or about 6.8% of its expanded share capital, between 16 and 19 US dollars each.
The people refused to be named because he was not allowed to speak to the media.
Pinduoduo is the last Chinese technology company to tap international capital markets to strengthen its coffers in an increasingly intense competition with its domestic rivals, notably the e-commerce heavyweights Alibaba Group Holding Ltd and JD. com Inc
Even if Sino-US commercial tensions cause tensions on world markets,
iQiyi Inc., Chinese video streaming service provider, raised 2.42 billion dollars in March, and Tencent Music Entertainment, the largest music streaming company in China, aims to raise up to $ 4 billion in a US IPO scheduled for October.
Set up by former Google engineer Colin Huang in 2015, Pinduoduo will start Trad on the Nasdaq under the symbol PDD on Thursday.
He stated in US regulatory filings that he had attracted more than 300 million active buyers and over a million merchants on his platform
. user base in small Chinese cities, the company's gross merchandise volume exceeded 100 billion yuan ($ 14.98 billion) last year. The Taobao market of Alibaba took five years to reach this milestone, while JD.com took 10 years.
Investors and analysts also attribute its rapid growth to online traffic derived from WeChat, Tencent's messaging application. "We believe that WeChat represents the majority of buyers' traffic, and Pinduoduo would not have been able to build its large user base in a cost-effective and fast manner without WeChat," writes George Arun, a technology company. analyst who publishes on the independent research platform Smartkarma.
The Pinduoduo business figure rose sharply, reaching 1.38 billion yuan in January-March compared with 37 million yuan in the same period a year ago. Its net loss, however, remained broadly stable at 201 million yuan
China Renaissance, CICC, Credit Suisse and Goldman Sachs advise Pinduoduo
(Report by Julie Zhu and Fiona Lau of IFR in Hong Kong, Christopher Cushing and Stephen Coates)
