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
China’s Meituan Dianping, an online food delivery-to-ticketing services platform, has set an indicative price range of HK$60 to HK$72 (US$7.64-US$9.17) per share for its initial public offering (IPO) in Hong Kong, valuing itself at up to US$55 billion, four people with direct knowledge of the matter said.
Meituan, already one of China’s most valuable internet firms, could raise as much as US$4 billion before the exercise of a “greenshoe” or over-allotment option, whereby additional shares are sold depending on demand.
The company is discussing a valuation of US$46 billion to US$55 billion and is planning to secure a total of US$1.5 billion from five cornerstone investors, including its main backer gaming and social media company Tencent Holdings Ltd, and global asset manager OppenheimerFunds, the people said.
Oppenheimer will commit US$500 million and Tencent US$400 million, they said.
Other cornerstone investors include UK-based hedge fund Lansdowne Partners ($300 million), US hedge fund Darsana Master Fund LP ($200 million) and Chinese state-owned conglomerate China Chengtong Holdings Group ($100 million).
Tencent declined to comment. The other cornerstone investors did not immediately respond to requests for comment. Calls to Darsana went unanswered.