Chinese e-grocer Dingdong Maicai’s valuation rises to $6.6b in US stock market debut

“Shares of Dingdong, backed by SoftBank Vision Fund 2, opened 19% above their offer price in their market debut in the US on Tuesday, giving the Chinese grocery app a valuation of US$6.6 billion,” Reuters reported.

Details:

• Its shares debuted at US$28 apiece, higher than the IPO price of US$23.50 per share.
• The company sold 3.7 million American depositary shares (ADSs), which was slashed from its original target of 14 million ADSs.

Context:

• Dingdong Maicai cut its IPO target by over 70% to US$94.4 million from US$357 million. This came after shares of its Tencent-backed rival Missfresh shrank during its US financial debut.
• In addition to SoftBank, other investors in Dingdong Maicai include Tiger Global, Sequoia Capital, and General Atlantic.