China's Meituan-Dianping Files for IPO, Reveals Loss of Nearly $3 Billion in 2017 -- Update
June 25 2018 - 12:04AM
Dow Jones News
By Liza Lin and Stella Yifan Xie
HONG KONG-- Fast-growing Chinese technology startup
Meituan-Dianping applied to list in Hong Kong and seeks to raise
billions of dollars to help finance its growth strategy in what is
a highly competitive internet marketplace.
The Beijing-based online services provider is one of the
country's most valuable private tech companies. Its current
investors include Priceline Group Inc., the Canada Pension Plan
Investment Board and Chinese social media and gaming firm Tencent
Holdings Ltd. Meituan said it lost money last year but its revenue
more than doubled, and it expects to maintain rapid growth as more
Chinese consumers spend money online.
Meituan didn't disclose how much it plans to raise in the stock
sale, but the company is targeting a valuation of more than $60
billion, according to people familiar with the matter. Companies
listing in Hong Kong typically sell at least 10% of their shares
when they go public. Goldman Sachs, Morgan Stanley, and Bank of
America Merrill Lynch are the main banks handling Meituan's
IPO.
In a filing with Hong Kong's stock exchange, Meituan said it
generated 33.9 billion yuan ($5.2 billion) in revenue in 2017, up
161% from a year earlier.
The company posted a loss of 18.99 billion yuan last year, its
prospectus said.
The company also said its adjusted net loss was 2.85 billion
yuan in 2017, about half of what it was for the two years before
that. The adjusted figure strips out share-based compensation
expenses and gains and losses from investments, asset sales and
discontinued operations. Meituan said it had 19.4 billion in cash
equivalents at the end of last year.
Write to Liza Lin at Liza.Lin@wsj.com and Stella Yifan Xie at
stella.xie@wsj.com
(END) Dow Jones Newswires
June 24, 2018 23:49 ET (03:49 GMT)
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