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9/3/2018, 10:17 AM (Source: TeleTrader)
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Meituan looking to raise up to $4.5B in IPO – report

An online services startup from Beijing is on the way to becoming one of the most valuable ones in the world before a stock market debut, according to a report published on Monday by the Wall Street Journal. Meituan Dianping launched an initial public offering for 8.2% of its equity, worth up to $4.5 billion, according to the article, which cites other unconfirmed information from the media as well. Trading is scheduled to start on September 20 in Hong Kong.

The company, founded in 2010, operates a food delivery platform, online reviews and a voucher business. In October it raised $4 billion from Tencent Holdings Ltd., which owns more than a fifth, and investors including Booking Holdings Inc. and the Canada Pension Plan Investment Board. The news outlet said Tencent pledged to pay $400 million in the IPO, while that OppenheimerFunds Inc. prepared $500 million. Lansdowne Partners Ltd., Darsana Capital Partners LP and China Chengtong Holdings Group Ltd. are also said to be among the group of backers which intend to purchase one third of the package.

The price range is apparently HK$60 to HK$72 or $7.64 to $9.17, meaning Meituan would have a market valuation of up to $54.7 billion, though early estimates climbed to $81 billion.

Baha Breaking News (BBN) / IT