Chinese-based internet giant Meituan Dianping filed for an initial public offering in Hong Kong, becoming the most recent Chinese technology company to throw a multi-billion dollar public offering this year according to Bloomberg.
The food delivery and restaurant reviews startup submitted documents for share listing on Friday and is said to have been aiming for fundraising of $6 billion at a valuation of about $60 billion. Meituan disclosed it had a net loss of 19 billion yuan or $2.9 billion on total revenue $5.2 billion for the fiscal year of 2017 and adjust loss of 2.8 billion yuan. Chinese smartphone maker Xiaomi is undergoing the process of raising upwards of $6.1 billion to be the world’s largest IPO in two years.
The company was valued at $30 billion recently as the fourth most valuable startup according to CB insights. It offers restaurant reviews, group-buying discounts and deliveries of food, groceries and other goods and has expanded into ride-sharing bikes and travel. Chinese customers can order food, groceries, massages, haircuts and manicures from their smartphones with the app remotely. Meituan was founded in 2010 by Chief Executive Wang Xing as a group-buying site before it merged with Dianping, a restaurant and local business review business, in 2015. Altogheter it handled $57 billion in transactions in 2017 between approximately 320 million active buyers and over 4 million merchants.
The IPO would allow Meituan more capital to expand and compete with Alibaba in food delivery, Didi Chuxing in ride hailing and Tencent, one of their own backer, in payments. It expanded into bike sharing with Mobike valued at $3.4 billion.
Meituan is in a position to sell Chinese depositary shares, a government program that gives domestic investors and stem more opportunities to reach global markets.