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The Amazon services becomes public.
Meituan-Dianping, more commonly known as "Meituan", is an "online-to-offline" or O2O platform in China offering everything from movie tickets to holiday bookings. The company filed an IPO late Friday on the Hong Kong Stock Exchange. The company is valued at $ 60 billion – twice what it was worth in October – and is seeking to raise $ 4 billion from the IPO according to Reuters. Goldman Sachs, Morgan Stanley and Bank of America Merrill Lynch are sponsoring the IPO.
Meituan was created in 2015 with the merger of two online services considered as Chinese equivalents of Groupon and Yelp. Tencent (tcehy) is a major investor in the business. Alibaba (Baba) was invested in Meituan before the merger, but has since sold the majority of its shares. Alibaba has its own O2O app called Koubei, which it invests as a competitor of Meituan.
This will be the second multi-billion dollar technology float this year after Beijing-based smartphone maker Xiaomi. Both Xiaomi and Meituan are listed with a two-class share structure under a new rule in the city that was designed to attract technology companies.
Xiaomi's shares are expected to start trading in July. Meituan has not indicated when the shares will start trading, but an October date is scheduled.
While it's about to list, Meituan has something in common with many giant IPOs of the past: despite the fact that it has 320 million active users, the site n & # 39; Has not yet made a profit. In 2017, the company recorded an adjusted net loss of 2.8 billion yuan ($ 430 million), compared to 5.4 billion yuan ($ 830 million) in 2016.
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