Online Grocer Dingdong slashes target, raising $95.7 million in the US IPO- Ping...

Online Grocer Dingdong slashes target, raising $95.7 million in the US IPO- PingWest

Online Grocer Dingdong slashes target, raising $95.7 million in the US IPO

5 hours ago

Chinese online grocer Dingdong Maicai goes public on New York Stock Exchange today, raising $95.7 million.

Details: The company slashed its IPO fundraising target by 74% just prior to its debut. Previously, the target was $357 million.

According to the prospectus, the company stated that its total revenue reached $1.7 billion, a nearly three-fold increase from the $600 million in 2019. But its net loss widened to $485 million from $290 million a year ago.

Last week, Missfresh, the rival of Dingdong, went public in the US. Its shares lost about a quarter of their value on their first day, ending at $9.66 from their IPO price of $13. At the end of its first trading day, the Tencent-backed grocer had raised $273 million, far less than the upper limit of $386 million it had given in its IPO prospectus, and had a market value of about $2.5 billion.

The gross merchandise volume (GMV) handled by Dingdong last year was roughly double Missfresh’s, with the former posting 13 billion yuan compared with the latter’s 7.6 billion yuan. Dingdong also saw its revenues soar 46% in this year’s first quarter, according to its IPO prospectus. By comparison, sales of its rival Missfresh fell by 9.4% in the three months to March.

Context: Chinese grocery market is expected to grow to 15.7 trillion yuan by 2025, according to third-party research provided in Missfresh’s prospectus. The research points out that China's grocery market is highly fragmented, with the top 10 participants accounting for only 6.7% of total sales.

Deeper-pocketed behemoths like e-commerce giants Alibaba, ride-hailing giant Didi Chuxing, and Pinduoduo are also moving aggressively into the sector.

SHARE