China's dominant food reviewer and delivery company mulls US$6 billion IPO
Meituan Dianping, which counts video games and social media giant Tencent among its backers, is targeting a valuation of roughly US$60 billion
China’s restaurant review and delivery giant Meituan Dianping plans to file for an initial public offering (IPO) of about US$6 billion in Hong Kong as soon as this month, according to people familiar with the matter, which would make it the city’s second multibillion-dollar public listing by a tech start-up this year.
Meituan is considering selling about 10 per cent of the company, the minimum required under Hong Kong exchange rules, to avoid dilution, said one of the people, who asked not to be named because the matter is private.
The firm, which counts video games and social media giant Tencent Holdings among its backers, is targeting a valuation of roughly US$60 billion, the person said, although the valuation and fundraising target will not be in the initial filing documents. With the first filing in June, the actual listing of Meituan shares is likely around October, the people said.
It is also considered a prime candidate to sell shares in mainland China as part of the government’s programme to give more opportunities to domestic investors.
It is not clear yet when the sale of Chinese depository receipts would take place. Meituan declined to comment on a potential IPO and said that if it has specific fundraising plans it will announce them at the appropriate time.