Meituan Dianping sets HK IPO valuation

SINGAPORE/HONG KONG: China’s Meituan Dianping, an online food delivery-to-ticketing services platform, has set an indicative price range of HK$60 to HK$72 ($7.64-$9.17) per share for its initial public offering (IPO) in Hong Kong, valuing itself at up to $55 billion, four people with direct knowledge of the matter said.Meituan, already one of China’s most valuable internet firms, could raise as much as $4 billion before the exercise of a “greenshoe” or over-allotment option, whereby additional shares are sold depending on demand.

The company is discussing a valuation of $46 billion to $55 billion and is planning to secure a total of $1.5 billion from five cornerstone investors, including its main backer gaming and social media company Tencent Holdings Ltd, and global asset manager OppenheimerFunds, the people said.

Oppenheimer will commit $500 million and Tencent $400 million, they said.

Other cornerstone investors include UK-based hedge fund Lansdowne Partners ($300 million), U.S. hedge fund Darsana Master Fund LP ($200 million) and Chinese state-owned conglomerate China Chengtong Holdings Group ($100 million).

Tencent declined to comment. The other cornerstone investors did not immediately respond to requests for comment. Calls to Darsana went unanswered.

Meituan declined to comment when reached by Reuters.

The Beijing-based firm filed plans for the city’s second multibillion-dollar tech float this year after smartphone maker Xiaomi Corp’s blockbuster IPO of $5.4 billion after the full exercise of the greenshoe option.