SoftBank-backed food shopping app targeting a 20% jump in its US IPO valuation following the Japanese giant’s investment
Grocery app Dingdong is eyeing a $6 billion valuation on its New York market debut as it joins other Asian tech start-ups tapping into the IPO boom in the United States
The Chinese unicorn, backed by SoftBank Vision Fund II, aims to raise up to $357 million in its IPO as it seeks to navigate a crowded sector that includes established players including Alibaba Group and Pinduoduo.
The company, which is also backed by Tiger Global Management and Sequoia Capital, will sell 14 million American Depositary Shares (ADSs) priced between $23.50 and $25.50 each, according to its filing.
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Established in 2017, Dingdong operates mainly in China’s first-tier cities such as Shanghai, Beijing, Shenzhen and Hangzhou.
The Covid-19 pandemic has fuelled online demand for fresh produce in China. Tencent Holdings Ltd-backed Missfresh, another Chinese online grocery start-up, also set its IPO terms earlier on Tuesday, targeting a valuation of nearly $3.8 billion.
Dingdong and Tencent Holdings Ltd-backed rival Missfresh’s IPOs are among a spate of upcoming Chinese listings on US stock exchanges this year.
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Didi Chuxing, China’s biggest ride-hailing firm, has also filed for a long-anticipated US stock market listing, setting the stage for what is expected to be the world’s biggest IPO this year.
Last year, Chinese companies raised $12 billion from US listings, more than triple the funds raised in 2019, according to Refinitiv data. This year is expected to comfortably surpass last year’s tally.
Dingdong plans to list its shares on the New York Stock Exchange under the symbol “DDL”. Morgan Stanley, BofA Securities and Credit Suisse are the IPO’s lead underwriters.
- Reporting by Reuters
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