China's Meituan Dianping sets HK IPO valuation at up to US$55 bil

(Sept 3): China’s Meituan Dianping, an online food delivery-to-ticketing services platform, has set an indicative price range of HK$60 to HK$72 ($10.48-$12.58) per share for its initial public offering (IPO) in Hong Kong, valuing itself at up to US$55 billion, four people with direct knowledge of the matter said.

Meituan, already one of China’s most valuable internet firms, could raise as much as US$4 billion ($5.5 billion) before the exercise of a “greenshoe” or over-allotment option, whereby additional shares are sold depending on demand.

The company is discussing a valuation of US$46 billion to US$55 billion and is planning to secure a total of US$1.5 billion from five cornerstone investors, including its main backer gaming and social media company Tencent Holdings, and global asset manager OppenheimerFunds, the people said.

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