September 6, 2018 / 11:08 AM / 15 days ago

China's Meituan Dianping confirms $4.4 billion Hong Kong IPO plans

HONG KONG (Reuters) - China’s Meituan Dianping, an online food delivery-to-ticketing services platform, confirmed it had filed for an up to $4.4 billion Hong Kong IPO and said it will focus on its domestic business instead of overseas expansion in the near future.

Management team of China's Meituan Dianping, an online food delivery-to-ticketing services platform, attend a news conference on its IPO in Hong Kong, China September 6, 2018. REUTERS/Bobby Yip

This follows a Reuters report over the weekend, citing four sources, that Meituan had set an indicative price range of HK$60 to HK$72 ($7.64-$9.17) per share for its IPO, valuing itself at up to $55 billion, in what would be the world’s biggest internet-focused float in four years.

Beijing-based Meituan, which offers services ranging from movie ticketing, food delivery to hotel and travel booking as well as ride-hailing, was valued at around $30 billion in a fundraising round late last year.

Meituan does not have big plans to expand overseas in the near future and will focus on the domestic market, its co-founder and chief executive, Wang Xing, said at a news conference in Hong Kong on Thursday.

Founded in 2010, Meituan which used to be likened to U.S. discounting platform Groupon Inc, in 2015 completed a $15 billion merger with then-main rival Dianping, akin to U.S. online review firm Yelp Inc.

Currently, its competitors include Alibaba-backed food-delivery platform Ele.me and leading ride-hailing firm Didi Chuxing, backed by Japan’s SoftBank Group Corp.

This year, Meituan invested in Indonesian ride hailing firm Go-Jek and Indian online delivery service provider Swiggy.

Meituan, however, will not increase its investments in the car-hailing business and instead concentrate on its key business of food delivery, said Wang Huiwen, the company’s co-founder and senior vice president.

($1 = 7.8495 Hong Kong dollars)

Reporting by Julie Zhu; Editing by Himani Sarkar

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