MEITUAN TAKES ORDERS FOR US$4.4B HK IPO
Tencent among 5 cornerstone investors to buy US$1.5b of stock
MEITUAN Dianping, the Chinese restaurant reviews and delivery giant backed by Tencent Holdings Ltd, started taking orders for an initial public offering (IPO), here, that could raise as much as US$4.4 billion (RM18.23 billion).
The company is offering 480.27 million new Class B shares at HK$60 to HK$72 (RM31.67 to RM38) apiece, according to terms for the deal obtained by Bloomberg yesterday.
Five cornerstone investors have agreed to buy a combined US$1.5 billion of stock in the offering, the terms show.
Meituan’s IPO will bankroll its costly expansion into businesses from ride-hailing to finance as it pursues an ambition to become a super-app in the vein of Tencent’s own WeChat.
That sets it up for a clash with Alibaba Group Holding Ltd, which is spending billions to try and seize control of China’s US$1.3 trillion food delivery and online services industry.
In ride-hailing, it’s taking on Didi Chuxing, the startup that defeated Uber Technologies Inc in China. Meituan’s IPO filings show a company growing rapidly but also haemorrhaging cash: it lost US$2.9 billion last year alone.
Tencent has committed to buy US$400 million of stock in in Meituan’s IPO, while Oppenheimer agreed to invest US$500 million, the terms show.
Darsana Capital Partners will purchase US$200 million of shares, while fellow hedge fund Landsdowne Partners agreed to invest US$300 million. The China Structural Reform Fund committed to purchase US$100 million, the terms show.
Meituan expects to take investor orders through September 12 and aims to start trading September 20, the terms show.
Meituan would be only the second company to list with weighted-voting rights, here, after smartphone maker Xiaomi Corp priced a US$5.4 billion share sale in June.