Briefing: Meituan Dianping is valuing itself at $55 billion for its Hong Kong IPO

China’s Meituan Dianping sets HK IPO valuation at up to $55 billion: sources —Reuters

What happened: Meituan Dianping has set an indicative price range of $7.64-$9.17 per share for its Hong Kong IPO, valuing itself at $46-$55 billion, according to Reuters’ sources. The company is planning to secure a total of $1.5 billion from five cornerstone investors including its previous backer Tencent which aims to give $400 million and OppenheimerFunds which will invest $500 million.

Why it’s important: Meituan is the second multibillion-dollar tech float coming out of Beijing this year after Xiaomi’s $5.4 billion IPO. Expectations were high during Xiaomi’s listing but in the end the company faced several setbacks that lowered its expected $100 billion valuation to half of that. Like Xiaomi, Meituan is filing with a dual-class share structure listing made by Hong Kong to attract tech companies.