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
But some analysts are a little concerned about its valuations and future growth
Meituan Dianping, China’s largest on-demand online service provider, has lined up US$1.5 billion from five cornerstone investors including Oppenheimer, Tencent, and Lansdowne Partners for its upcoming Hong Kong initial public offering (IPO), which could be worth up to US$4.4 billion.
The listing would be the city’s second blockbuster tech float this year after Chinese mobile phone maker Xiaomi, and possibly the biggest for an internet services company since Tencent Holdings’ IPO in 2004.
At a pricing range of HK$60 to HK$72 per share, Meituan plans to issue 480.27 million shares, seeking to raise US$3.7 billion to US$4.4 billion. If it exercises an over-allotment option, the IPO value could rise by 15 per cent to between US$4.2 billion and US$5 billion.
That would make Meituan’s listing the third largest in Hong Kong this year, after telecoms tower firm China Tower and Xiaomi.
The IPO also adds to a flurry of Chinese internet listings in Hong Kong this year. By the end of July, at least 10 Chinese internet firms had raised a combined HK$42 billion (US$5.35 billion).
At the indicated pricing range, Meituan is seeking a valuation of between US$45.5 billion and US$54.7 billion. That would be 52 per cent to 82 per cent above its most recent fundraising round last October, when it was valued at US$30 billion.