Meituan-Dianping has filed for an IPO on the Hong Kong Stock Exchange. The Chinese internet platform which offers everything from restaurant reviews to ride sharing is expected to raise billions from the flotation.
Reuters reports that the company is seeking over $4bn in funding from the IPO, citing three people with knowledge of the deal. After the IPO Meituan-Dianping is set to be valued at over $60bn. The filing was made late on Friday and announced on the exchange website on Monday, but details of how many shares are available and the time frame of the IPO have yet to be disclosed.
This marks the second multi-billion-dollar IPO Hong Kong will benefit from this year following a change in rules allowing dual-class shares, which Meituan-Dianping will take advantage of.
Meituan-Dianping, which was created in 2015 from the amalgamation of two start-ups, offers a diverse range of services from online shopping and meal delivery to restaurant reviews and even ride sharing. As one of China’s most valuable startups, it currently has 320mn monthly active users. The company is already backed by Tencent.
However, the company has yet to turn a profit and according to the Wall Street Journal revealed a loss of nearly $3bn in 2017.
The IPO is to be sponsored by Goldman Sachs, Morgan Stanley and Bank of America Merrill Lynch.