The SoftBank-backed Chinese operation is now hoping to raise just $94.4 million compared to earlier expectations of up to $357 million after watching rival slump on its market debut
Chinese grocery app Dingdong slashed the size of its initial public offering in the United States on Monday to about a quarter of what it had hoped for earlier.
It is now looking to raise up to $94.4 million, according to a filing, compared with its earlier plan for up to $357 million.
The SoftBank Vision Fund II-backed company said it would be aiming to sell 3.7 million American Depositary Shares (ADSs) priced between $23.50 and $25.50 each. It had earlier said it would be looking to sell 14 million ADSs.
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The downsizing comes after rival grocery app Missfresh Ltd, backed by Tencent Holdings Ltd, plunged on its market debut last week.
After opening 18% below the offer price of $10 per ADS on Friday, shares of Missfresh have slumped further to $8.75 per ADS in late afternoon trading on Monday, almost 33% below their IPO price.
Morgan Stanley, BofA Securities and Credit Suisse are the lead underwriters for the Dingdong IPO.
- Reporting by Reuters
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