[ad_1]
Chinese start-up Meituan Dianping has raised about $ 4.2 billion during its IPO in Hong Kong, according to people familiar with the situation, defying a weak market to show that investors remain attached to growth technology companies fast.
Meituan, supported by
Tencent Holdings
Ltd.
TCEHY -0.41%
, welcomes the growing Chinese middle class, which is becoming more and more online for everything from ordering lunch to booking movie tickets. Its application offers services similar to those of
GrubHub
Inc.
WORM -2.81%
groupon
Inc.
GRPN -1.29%
and
yap
Inc.
yap 1.08%
On Thursday, Meituan's fundraising was near the top of its range, contrasting with a mediocre response to Xiaomi smartphone maker's IPO earlier in the summer, which ultimately raised 5.4 billions of dollars. It also came a few days after the city's Hang Seng benchmark entered bearish territory, falling 20% from the January high, due to concerns over trade, Chinese growth and trade. dollar stronger.
Meituan, based in Beijing, has not yet made annual profits, but its revenues more than doubled last year to about $ 5 billion. The company raised $ 33.14 billion from Hong Kong ($ 4.2 billion) and assessed its bid at HK $ 69 ($ 8.79) per share, according to people familiar with the situation. This price is in the upper half of an earlier range of HK $ 60-72.
The deal gives the company a market capitalization of nearly $ 53 billion – a sharp increase over its $ 30 billion valuation when an increase in private capital at the end of 2017. IPO was supported by investors such as Tencent and OppenheimerFunds. Hong Kong billionaire Li Ka-shing also plans to buy some of the shares, according to a person close to the record.
Meituan's shares will start trading in Hong Kong on September 20th.
Meituan was created in 2015 through a combination of two Internet startups. Past donors include Singapore's sovereign wealth fund GIC Pte Ltd. and the US travel portal Booking Holdings Ltd.
Priceline Group
.
Goldman Sachs Group
Inc.
Morgan Stanley
and Bank of America Merrill Lynch are the co-sponsors of the Meituan offer.
Separately, investment bank China Renaissance Holdings Ltd., an advisor to various mainland start-ups, including Meituan, set the price range for its own IPO of up to $ 377 million before its start on 27 September.
The Beijing-based financial company sells about 85 million shares at a price of 31.80 Hong Kong dollars to 34.80 Hong Kong dollars, according to an article published by the Wall Street Journal. This would give China Renaissance a market capitalization of up to $ 2.74 billion before it can sell more securities.
Fan Bao, a former banker of Credit Suisse and Morgan Stanley from Shanghai, co-founded China Renaissance in 2005 and is the controlling shareholder.
Alipay, the largest mobile payment system in China owned by Jack Ma's Ant Financial Services Group, intends to purchase $ 50 million of the company's shares in the IPO, according to the terms of the contract. Other leading investors, who are expected to help support the offer, include hedge fund company Snow Lake Funds, which pledged $ 50 million, and private bank LGT Group, which will buy $ 25 million. dollars of stock.
Write to Joanne Chiu at [email protected] and Liza Lin at [email protected]
Source link
