Meituan Dianping (3690.HK)

[cyclone]

China's Meituan Is Said to Plan $6 Billion IPO Filing This Month

By Lulu Yilun Chen , Eric Newcomer , and Crystal Tse
June 12, 2018, 5:30 PM GMT+8

China’s restaurant review and delivery giant Meituan Dianping plans to file for an initial public offering of about $6 billion in Hong Kong as soon as this month, according to people familiar with the matter, the city’s second multibillion-dollar public listing by a tech startup this year.

The company is considering selling about 10 percent of the company, the minimum required under Hong Kong exchange rules, to avoid dilution, said one of the people, who asked not to be named because the matter is private. The company is targeting a valuation of roughly $60 billion, the person said, although the valuation and fundraising target won’t be in the initial filing documents. With the first filing in June, the actual listing of Meituan shares is likely around October, the people said.

Meituan is also considered a prime candidate to sell shares in mainland China as part of the government’s program to give more opportunities to domestic investors. It’s not clear yet when the sale of Chinese depository receipts would take place. Meituan declined to comment on a potential IPO and said that if it has specific fundraising plans it will announce them at the appropriate time.

More details in https://www.bloomberg.com/news/articles/...this-month

[cyclone]

Meituan Dianping begins institutional order taking for up US$4.4 billion IPO in Hong Kong, the city’s second major tech listing this year
Cookies Quartet ranked second in Hong Kong in terms of revenue last year

Laura He
PUBLISHED : Tuesday, 04 September, 2018, 12:39pm
UPDATED : Tuesday, 04 September, 2018, 12:39pm

Meituan Dianping, China’s largest on-demand online service provider, has lined up US$1.5 billion from five cornerstone investors including Oppenheimer, Tencent, and Lansdowne Partners for its upcoming Hong Kong IPO.

The listing would be the city’s second blockbuster tech float this year after Xiaomi and perhaps the biggest for an internet services company since Tencent Holdings’ IPO in 2004.

At a pricing range of HK$60 to HK$72 per share, Meituan plans to issue 480.27 billion shares, seeking to raise US$3.7 billion to US$4.4 billion. If it exercises an over-allotment option, the IPO value could rise by 15 per cent to between US$4.2 billion to US$5 billion.

That would make Meituan’s listing the third largest in Hong Kong this year, after telecoms tower firm China Tower and smartphone maker Xiaomi.

The IPO also adds to a flurry of Chinese internet listings in Hong Kong this year. By the end of July, at least 10 Chinese internet firms had raised a combined HK$42 billion. (US$5.35 billion).

At the indicated pricing range, Meituan is seeking a valuation of between US$45.5 billion to US$54.7 billion. That is up 52 per cent to 82 per cent from its most recent fundraising round last October, when it was valued at US$30 billion.

Meituan will begin taking institutional orders for shares from Tuesday, and retail orders from Friday. The stock is expected to start trading on September 20 on Hong Kong’s main board.

The internet firm would also become the second listed company on the Hong Kong stock market using a weighted voting rights share structure, which gives founders greater voting power over minority shareholders.

The listing prospectus showed Meituan suffered loss making years in 2015, 2016 and 2017, losing 10.5 billion yuan (US$1.54 billion), 5.8 billion yuan, and 19 billion yuan respectively. After adjustment – excluding the impact of fair value changes of convertible redeemable preferred shares and other items, the net losses were 5.9 billion yuan, 5.4 billion yuan, and 2.9 billion yuan respectively for the three years.

More details in https://www.scmp.com/business/companies/...44-billion

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Hong Kong billionaires Li Ka-shing, Joseph Lau and Adrian Cheng subscribe to Meituan Dianping’s US$4.2 billion IPO
Meituan Dianping, the Chinese on-demand online service provider, has priced its IPO near the top end of the indicative range at HK$69 per share

Laura He
PUBLISHED : Thursday, 13 September, 2018, 12:30pm
UPDATED : Thursday, 13 September, 2018, 6:17pm

Hong Kong billionaires Li Ka-shing, Joseph Lau Luen-hung and Adrian Cheng Chi-kong have put their faith in Meituan Dianping’s HK$33.14 billion (US$4.2 billion) IPO – the city’s second largest tech offering this year.

Meituan, an online platform offering services ranging from movie ticketing to food delivery, has priced its initial public offering at HK$69 per share, near the top of the indicative range of HK$60 to HK$72, according to sources.

Li Ka-shing, the city’s richest man known affectionately as “Superman” for his ability to pick winners, has subscribed to the IPO under the international placement tranche, the sources said.

Joseph Lau Luen-hung, former chairman of Chinese Estates and Adrian Cheng, executive vice-chairman of New World Development, appear to also have been convinced of Meituan’s potential.

Hillhouse Capital and Tiger Fund, the existing investors of the Beijing-based company, have subscribed to the offering.

Meituan’s HK$33.14 billion fundraising will make it Hong Kong’s second blockbuster tech float this year after Chinese mobile phone maker Xiaomi, and possibly the biggest for an internet services company since Tencent Holdings, which raised US$200 million in 2004.

If the company exercises an over-allotment option, the IPO value could rise by 15 per cent to US$4.8 billion. That would make Meituan’s listing the third largest in Hong Kong this year, after telecoms tower operator China Tower and Xiaomi.

At the offer price, Meituan is seeking a valuation of around US$52.4 billion – 75 per cent above its most recent fundraising round last October, when it was valued at US$30 billion.

The stock is expected to start trading on Hong Kong’s main board from September 20.

More details in https://www.scmp.com/business/companies/...rian-cheng

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Meituan Dianping shoots up past 42 top Hong Kong firms in market value in trading debut
Wang Xing, the founder and chairman of Meituan, gives special thanks to the late Apple founder Steve Jobs

Laura He
UBLISHED : Thursday, 20 September, 2018, 11:36am
UPDATED : Thursday, 20 September, 2018, 3:43pm

China food-delivery service platform Meituan Dianping shot up as much as 7 per cent in its trading debut on Thursday, pushing its market cap to above HK$400 billion (nearly US$51 billion), exceeding that of many top Hong Kong companies on the benchmark index.

The Beijing-based firm, which raised US$4.2 billion in the city’s second-biggest tech initial public offering this year, opened higher and briefly touched HK$74 per share, compared with the offer price of HK$69.

By late morning trade, it traded at HK$72.75, reflecting a market cap of HK$399.5 billion.

The value has surpassed 42 of the Hang Seng Index components, including Hang Seng Bank, CK Hutchison Holdings, and Hong Kong Exchanges & Clearing.

It also exceeded the US$38.6 billion market cap of e-commerce site JD.com, one of China’s largest internet companies by revenue. Both Meituan and JD.com have backing from China’s social media and gaming giant Tencent.

At the listing ceremony on Thursday, Wang Xing, founder and chief executive of Meituan, gave special thanks to Steve Jobs, the late founder and former chief executive of Apple.
“Without Apple, without iPhone, without smartphones and the mobile internet, [then] everything we have done today would not have been able to be realised,” Wang said.

Meituan offers such services as food delivery, shopping, ticket and hotel booking on its app, which has 340 million users.

Chen Shaohui, chief financial officer for Meituan, said the company will strengthen its cooperation with Tencent Holdings going forward. The two firms have already worked together on online traffic, cashless pay, marketing and map services.

If Meituan closes higher, it will buck a trend among recent IPOs in Hong Kong.

More details in https://www.scmp.com/business/companies/...rket-value

[weijian]

Trip.com was the previous ctrip that we commonly know/remember.

Classic case study taken straight out of the play book of disruptive innovation as described by the late Prof Clayton Christensen.

How Meituan outcompeted Trip.com to become China’s largest hotel booking platform

In 2012, few would have imagined that Meituan would come to dominate China’s online hotel booking industry. The two-year-old firm was focused on its core business of offering group deals for local services, modeled off the success of Groupon. But Meituan was hemorrhaging cash as it strived to fend off other competitors also offering steep discounts.

To stabilize the firm and return it to profitability, Meituan’s founder and CEO, Wang Xing, split his employees into teams to explore new revenue streams in local services ranging from movie ticketing to bike-sharing, with promises of further resources and funding if they achieved breakthroughs.

The hotel booking division was created in 2013 under this initiative. Nicknamed “Watermelon” by its founding team, it got off to a rocky start, signing 120 deals with small-town hotels in the first month of its existence.

As the team got to work, a fierce pricing war was raging around them between the two titans of the Chinese hotel booking industry, Trip.com and eLong.

Trip.com was the unquestioned market leader. From train and flight tickets to luxury hotels and car hires, the firm was extending its grip within and beyond China’s shores.

https://kr-asia.com/how-meituan-outcompe...oking-king

[Wildreamz]

Meituan tanks (-18%) on new food delivery regulations:

七部门联合印发《关于落实网络餐饮平台责任切实维护外卖送餐员权益的指导意见》

http://hk.eastmoney.com/a/202107262014694636.html

Edit: English: https://www.bloomberg.com/news/articles/...form-curbs

Meituan Dives 15% After China Issues Food Platform Curbs

I actually think this is a positive change for stakeholders, with regards to competition, consumer rights and employee rights.

But, we getting closer and closer to "cost of service" regulations.

(not vested)

[weijian]

Meituan tumbles after China asks delivery platforms to cut fees

Online food delivery platforms were also told to give preferential fees to restaurants in regions hit by the pandemic, according to a statement by the National Development and Reform Commission on Friday (Feb 18).

The new policy comes as investors remain jittery over China's tech sector following Beijing's year-long regulatory crackdowns on private enterprise.

https://www.businesstimes.com.sg/garage/...o-cut-fees