China & # 39; s Meituan Dianping, an online platform for supplying food at the counter, has 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, with a value of up to $ 55 billion, four people with direct knowledge of the matter said.
Meituan, already one of China's most valuable Internet companies, could raise up to $ 4 billion before exercising a "greenshoe" or over-allotment option, with additional shares being sold depending on demand.
The company discusses a valuation of $ 46 billion to $ 55 billion and plans to acquire a total of $ 1.5 billion from five cornerstone investors, including mainback gaming and social media company Tencent Holdings Ltd and global asset manager OppenheimerFunds, said the people .
Oppenheimer will capture $ 500 million and Tencent $ 400 million, they said.
Other cornerstone investors are the UK based hedge fund Lansdowne Partners ($ 300 million), the US hedge fund Darsana Master Fund LP ($ 200 million) and the Chinese conglomerate China Chengtong Holdings Group ($ 100 million).
Tencent declined to comment. The other corner stone investors did not respond immediately to requests for comment. Calls to Darsana were not answered.
Meituan declined to comment when reached by Reuters.
The Beijing-based company filed plans for the second technical float of the city with a million dollars, after the blockbuster IPO of smartphone developer Xiaomi Corp of $ 5.4 billion after the full exercise of the greenshoe option.
It plans to use the process to upgrade its technology, develop new services and products and pursue acquisitions, including in accordance with the IPO submission.
Meituan is also – after Xiaomi – the latest company with a dual-class share structure to register for a listing in Hong Kong, under the new rules of the city that are designed to attract tech companies.
However, at the end of July, Hong Kong Exchange and Clearing (HKEX), the operator of Hong Kong Exchange, announced that it would postpone changes that would allow companies to hold shares with more voting rights, as more time was needed for investors to get used to to recent rule changes.
Meituan was valued at about $ 30 billion at the end of last year in a fundraising round.
Xiaomi began trading in July after a well-viewed but disappointing IPO that rated it at nearly half of the $ 100 billion initially estimated by industry analysts.
Meituan has been compared with the American discount platform Groupon Inc.
Founded in 2010 by serial entrepreneur Wang Xing, it completed a $ 15 billion merger with Dianping in 2015, similar to the US online review agency Yelp Inc.
Competitors include the Ele.me delivery platform, supported by e-commerce company Alibaba Group Holding Ltd, and the leading attraction company, Didi Chuxing, supported by the Japanese SoftBank Group Corp.
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