Meituan-Dianping files for Hong Kong IPO, said to seek over US$4 billion

The Meituan logo is seen in this illustration photo. (Reuters pic)

HONG KONG: China’s Meituan-Dianping, an online food delivery-to-ticketing services platform, filed for a Hong Kong IPO on Monday – an offering that aims to raise more than US$4 billion (RM16 billion), three people with knowledge of the plans said.

The firm, backed by gaming and social media firm Tencent Holdings Ltd, did not detail the amount of funds targeted or a time frame. Meituan-Dianping is likely to list in October, said the people, speaking on condition of anonymity.

Meituan-Dianping was formed in 2015 from the US$15 billion (RM60 billion) merger of Meituan, likened to US discounting platform Groupon Inc, and Dianping, akin to US online review firm Yelp Inc.

The company competes with Ele.me, backed by e-commerce firm Alibaba Group Holding Ltd, as well as market entrants such as ride-hailing app operator Didi Chuxing.

Meituan-Dianping did not respond to requests for comment late last week about the deal size or potential valuation.

The company booked 33.9 billion yuan (US$5.2 billion) in revenue in fiscal 2017, sharply higher than the 12.99 billion yuan made in the prior year, the filing said.

It made a 2.85 billion yuan adjusted net loss last year, smaller than losses of 5.35 billion yuan in 2016 and 5.91 billion yuan in 2015.

The filing comes as investors ready for a series of Chinese tech-related IPOs. Smartphone maker Xiaomi Corp on Thursday launched a blockbuster Hong Kong IPO, aiming to raise up to US$6.1 billion in the biggest tech-related listing worldwide since Alibaba’s record-breaking US$25 billion in 2014.

China Renaissance Group, a tech-focused investment bank led by one of the country’s most famed rainmakers, is also planning a Hong Kong IPO, keen to raise as much as US$800 million, people with direct knowledge of the matter told Reuters.

Meituan-Dianping has mandated Bank of America Merrill Lynch, Goldman Sachs Group Inc and Morgan Stanley to jointly sponsor its IPO.