Meituan said to set terms for up to RM18.5b IPO

HONG KONG • Meituan Dianping, a Chinese food delivery giant, plans to raise as much as US$4.5 billion (RM18.5 billion) in an initial public offering (IPO) in Hong Kong, according to people with knowledge of the matter.

The company plans to sell shares between HK$60 (RM31.40) and HK$72 apiece, the people said, asking not to be identified because the information is private. The offering has attracted five cornerstone investors, including Tencent Holdings Ltd, to invest a combined US$1.5 billion, according to the people.

New York-based Oppenheimer Holdings Inc has agreed to invest US$500 million as a cornerstone investor, while hedge funds Darsana Capital Partners LP and Landsdowne will buy US$200 million and US$300 million of shares respectively, the people said.

Meituan is seeking a valuation of as much as US$55 billion, according to one of the people. The company aims to start taking investor orders on Sept 4 through Sept 12. It expects to price the offering on Sept 12 with shares to start trading on Sept 20.

A representative for Meituan declined to comment. IFR Asia reported the terms earlier on Saturday, citing unidentified people familiar with the matter. Tencent declined to comment in an email.

Goldman Sachs Group Inc, Morgan Stanley and Bank of America Corp are joint sponsors for the offering, while China Renaissance Holdings Ltd is sole financial advisor, according to a preliminary prospectus. — Bloomberg