Tencent-backed Meituan raises $4.2 billion in IPO priced near range top-sources by Fiona Lau and Julie Zhu

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Topic Tags: Venture Capital, Meituan Dianping

Summary:

  • Chinese online food delivery-to-ticketing services firm Meituan Dianping raised $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
  • The proceeds will help Meituan fortify itself against stiff competition from its main competitor, food-delivery platform Ele.me which is backed by China’s biggest e-commerce company Alibaba Group Holding. Both parties, in a bruising battle for market share, are offering heavy discounts to attract new customers.
  • It offers a broad range of services including movie ticketing, food delivery, hotel and travel booking as well as ride-hailing.
  • Meituan had lined up $1.5 billion from five cornerstone investors for the IPO.
  • Tencent committed $400 million; global asset manager Oppenheimer $500 million; UK-based hedge fund Lansdowne Partners $300 million; U.S. fund Darsana $200 million and state-backed China Structural Reform Fund $100 million.