HONG KONG • China's Meituan-Dianping, an online food delivery-to-ticketing services platform, filed for a Hong Kong initial public offering yesterday that aims to raise more than US$4 billion (S$5.5 billion), three people with knowledge of the plans said.
The firm, backed by gaming and social media firm Tencent Holdings, did not detail the amount of funds targeted or a timeframe.
Meituan-Dianping is likely to list in October, said the sources.
It was valued at around US$30 billion in a fund-raising round last year.
It is aiming for a US$60 billion valuation with the IPO, though industry insiders said it may have difficulty reaching that target as it is still losing money and relies on a cash-burning business model to boost growth.
The firm declined to comment on the deal size or potential valuation.
Meituan-Dianping was formed in 2015 from the US$15 billion merger of Meituan, likened to United States discounting platform Groupon, and Dianping, akin to US online review firm Yelp.
It faces fierce competition from food delivery giant Ele.me, backed by e-commerce firm Alibaba, as well as deep-pocketed new market entrants such as ride-hailing app operator Didi Chuxing.
The firm unveiled a 19 billion yuan (S$4 billion) loss for last year, steeper than in the previous two years.
But its adjusted net loss - which excludes the impact of fair value changes of convertible redeemable preferred shares and other items - was 2.85 billion yuan, smaller than losses of 5.35 billion yuan in 2016 and 5.91 billion yuan in 2015.
Revenue rose to 33.9 billion yuan in fiscal 2017, sharply higher than the 12.99 billion yuan made in the previous year.
The filing comes as investors get ready for a series of Chinese technology-related IPOs.
Smartphone maker Xiaomi last 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, is also planning a Hong Kong IPO, keen to raise as much as US$800 million.
Meituan-Dianping's other backers include venture capital firms Sequoia Capital and DST Global, GIC and Temasek Holdings, as well as the Canada Pension Plan Investment Board.
REUTERS
