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Laura He

Retail investors have given a lukewarm response to Chinese food delivery service firm Meituan Dianping’s US$4.2 billion IPO, with the public tranche 1.5 times subscribed, fairing little better than China Tower’s mega listing in August.
Retail investors, which were allocated 5 per cent of the total available shares, subscribed for 36 million shares, the company said in an exchange filing in Hong Kong on Wednesday.
The offering received applications from more than 17,000 retail investors, locking up HK$2.6 billion (US$331.44 million) worth of capital during the subscription period.
The response among retail investor is similar to China Tower’s US$7.5 billion IPO last month, where the public portion was 1.36 times subscribed, representing HK$4.6 billion worth of orders.
The cooling sentiment marks a sharp turnaround from earlier in the year.


In July, retail investors oversubscribed to Xiaomi’s IPO by 8.5 times, placing HK$23 billion worth of orders. In May, Ping An Good Doctor’s offering was oversubscribed by 653 times, tieing up HK$370 billion in investor deposits.
Last Friday, the Hang Seng Index touched an intra-day low of 26,669, having fallen more than 20 per cent from its January peak of 33,484, technically entering a bear market. The index has had a slight rebound this week, to end at 27,407.37 on Wednesday.
However, professional investors took more of a shine towards Meituan, according to a company statement, which said demand for the international tranche was “heavily oversubscribed”.
The company priced its IPO at HK$69 per share, near the top of the indicative range of HK$60 to HK$72.

The HK$33.14 billion fundraising catapults Meituan to among Hong Kong’s top deals of 2018, where it ranks as the second largest tech offering, and the city’s third biggest IPO for the year.
Li Ka-shing, the city’s richest man, subscribed for shares in the international placement, according to sources.
Joseph Lau Luen-hung, former chairman of Chinese Estates and Adrian Cheng, executive vice-chairman of New World Development, were also among high profile investors subscribing to the offering.
Hillhouse Capital and Tiger Fund, the existing investors of the Beijing-based company, have also sought stakes in the IPO.
At the offer price, Meituan is seeking a valuation of around US$52.4 billion, or 75 per cent above its most recent fundraising round in October, 2017, when it was valued at US$30 billion.
If the company exercises an over-allotment option, the IPO value could rise by as much as 15 per cent to US$4.8 billion.
Meituan’s shares will begin trading on Thursday in Hong Kong.


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Jingdong underperforms Hang Seng on debut despite 60-times oversubscribed IPO

Downbeat stock market dampens retail enthusiasm for Meituan Dianping’s US$4.2 billion IPO in Hong Kong

Meituan’s shares will begin trading on Thursday in Hong Kong after the company raised HK$33.14 billion. Photo: Bloomberg

Meituan Dianping’s global offering investor luncheon presentation at the Grand Hyatt Hotel in Wan Chai. 04SEP18 SCMP / Nora Tam

China's Meituan Dianping said to price Hong Kong IPO, valuing services platform at up to US$55 billion

Meituan to become the latest company with a dual-class share structure to file for a Hong Kong listing under the city’s new rules designed to attract tech companies

Meituan delivery riders wait for food delivery assignments in Beijing on June 26, 2018. Photo: AFP

Hong Kong billionaires Li Ka-shing, Joseph Lau and Adrian Cheng subscribe to Meituan Dianping’s US$4.2 billion IPO

The management team of China’s on-demand online services provider Meituan Dianping, attend a news conference on its planned IPO in Hong Kong on September 6, 2018. Photo: Reuters

Hong Kong's richest tycoon Li Ka-shing announces his retirement on March 16, 2018, in Hong Kong as chairman of conglomerate CK Hutchison Holdings, effective in May. (Kyodo) ==Kyodo

Adrian Cheng Chi-kong, Executive Vice-chairman and General Manager of New World Development, during the announcement of the 2018 interim results at the Hong Kong Convention and Exhibition Centre in Wan Chai. 27FEB18 SCMP / K. Y. Cheng

Joseph Lau Luen-hung leave China Evergrande Centre in Wan Chai. On March 01, Joseph Lau announced he had transferred his entire controlling stake in Chinese Estates, worth an estimated HK$16.99 billion, to his wife and son Lau Ming-wai. 02MAR17 SCMP / Edward Wong

Meituan Dianping begins institutional order taking for up to US$4.4 billion IPO in Hong Kong, the city’s second major tech listing this year

Meituan Dianping has lined up has lined up US$1.5 billion from five cornerstone investors for the IPO set to debut of September 20. Photo: Martin Chan

Meituan delivery riders wait for food delivery assignments in Beijing on June 26, 2018. Chinese online services giant Meituan-Dianping filed for an initial public offering in Hong Kong on June 25, in what could become one of the the biggest IPOs of the year. / AFP PHOTO / GREG BAKER

Meituan Dianping to halt ride-hailing expansion in China amid crisis at industry leader Didi

The Beijing-based company, which is pursuing up to a US$4.4 billion listing in Hong Kong, currently offers ride-hailing services in Nanjing and Shanghai

Meituan Dianping, which is pursuing up to a US$4.4 billion listing in Hong Kong, operates China’s leading online marketplace for on-demand services. Photo: Reuters

Tencent-backed Chinese internet giant Meituan Dianping probes massive user-data leak

A deliveryman sets off with a food order in Shanghai. Food delivery and e-commerce giant Meituan is working with police to investigate an alleged data leak. Photo: AFP

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