Meituan-Dianping Pursues $6 Billion IPO in Hong Kong
Meituan-Dianping, a giant online group-buying and delivery platform in China, plans to file for an initial public offering in Hong Kong possibly in the next two weeks, according to reports.
The pending IPO, which could represent a 10 percent stake, is expected to raise about $6 billion, valuing the company at $60 billion, Bloomberg News reported. Although the exact timing of the IPO remains unclear, the issuance of Meituan shares is expected around October, according to Bloomberg, citing unnamed sources. Meituan declined to comment on the potential IPO.
Meituan, which combines the approaches of online reviewer platform Yelp, with the group-buying of Groupon, with a deliver service, has recently also expanded into ride-sharing and travel services.
The company, founded in 2010, handled $57 billion of transactions last year between about 320 million active buyers and more than 4 million merchants, Bloomberg reported. Meituan merged with Dianping, launched in 2003 to provide restaurant and other reviews, in 2015. Tencent Holdings, the giant social media and video-game platform, is among the combined companies' major investors.
While its IPO is slated for Hong Kong, Meituan is also expected to sell shares in mainland China as the government continues to push domestic companies to list locally. At the end of last year, rumors circulated that Meituan was considering New York for its IPO this year.