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.

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

What you get

Full access to all premium content and our full archives

Members'-only newsletters

Preferential access and discounts to all TechNode events

Direct access to the TechNode newsroom

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

Masha Borak

Masha Borak is a technology reporter based in Beijing. Write to her at masha.borak [at] technode.com. Pitches with the word "disruptive" will be ignored. Read a good book - learn some more adjectives.