China's Latest Tech IPO Raises $4.2 Billion
Chinese app company Meituan Dianping raised $4.2 billion in its IPO, while pricing its shares near the top of its target range, as suggested by a CNN report citing a person familiar with the matter.
Meituan ‘s app offers a range of services including lunch reservations, booking movie tickets and hailing car rides. The company’s IPO price of 69 Hong Kong dollars ($8.79) per share catapults its market value to $53 billion – which, although lower than its previously expected $60 billion, is still higher than the $30 billion valuation the startup received via private funding in October 2017.
What makes Meituan ‘s IPO stand out is that it has managed to garner a relatively successful price/market value amidst less-than-remarkable IPOs (such as those of smartphone-maker Xiaomi and electric-car company Nio) and sell-offs of many Chinese tech stocks in recent times.