In brief: Meituan floats shares at high end, raises $4.2b in Hong Kong

Chinese online food delivery-to-ticketing services firm Meituan Dianping raised US$4.2 billion in the world’s biggest internet-focused IPO in four years as it priced the float near the top end of a marketed range, people close to the deal said.

Meituan, backed by Chinese social media and gaming firm Tencent, sold about 480 million primary shares at HK$69 (US$8.79) each in the Hong Kong IPO, valuing the company at around US$52.8 billion, the sources said.

Source: Reuters

Full figures for the float are yet to be published, though Meituan could raise a further US$650 million if a 15 percent “greenshoe” over-allotment option is fully exercised after its shares begin trading.

The on-demand service app’s IPO has been one of the most eagerly anticipated in tech in recent years. Meituan reported a FY 2017 net loss of US$438 million in its IPO prospectus, though this was 46.7 percent narrower than the previous year’s US$822 million deficit. The company pulled in US$5.2 billion in revenue in 2016, representing year-on-year growth of 162 percent.

Currency converted from Hong Kong dollar. Rate: US$1 = HK$7.85