Chinese on-demand grocer Dingdong Maicai raised $95.7 million in a US IPO on Tuesday after pricing its shares at the lower end of the range. 

Why it matters: Dingdong Maicai’s debut received a lukewarm reception, even after cutting its original IPO target by 74% a day before the debut. Coming days after its rival MissFresh’s disappointing Nasdaq debut, it reflects declining market sentiment for Chinese online grocers. 

Details: Dingdong Maicai went public on the New York Stock Exchange on Tuesday, just four days after its rival MissFresh debuted to a disappointing result on Nasdaq

  • Shares of Dingdong Maicai inched up 0.09% on the first trading day, and rose 5.23% in after-hours trading.
  • The company raised only a quarter of its original target of $357 million. It reduced the target 74% to $94.4 million a day before. 
  • Dingdong Maicai’s founder and CEO Liang Changlin told local media that the company has “sufficient cash” after raising a combined $1.03 billion in two funding rounds finalized in April and May this year.
  • Liang added that those private investments had allowed Dingdong to be flexible in the IPO. “Fundraising is not the primary goal for this IPO,” Liang told local media

Context: MissFresh closed at $8.65 on Wednesday, after falling more than 30% from its $13 offering price.

Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.