Chinese tech association Meituan Dianping done a clever batch marketplace entrance Thursday after lifting billions of dollars from investors.
Shares in Meituan, whose app is used by some-more than 300 million people, jumped as most as 7% in morning trade in Hong Kong, giving it a marketplace value of some-more than $50 billion.
Its clever start contrasts with a diseased entrance by a prior large Chinese tech IPO in a city. In July, smartphone builder Xiaomi’s shares fell on their initial day and are trade subsequent their IPO cost some-more than dual months later.
Meituan’s app offers a one-stop emporium for services where people can make lunch reservations, buy film tickets, book vacations or accost automobile rides. The association lifted $4.2 billion from a IPO, pricing a shares nearby a tip of a aim range.
Several new Chinese tech listings in a United States have done flighty starts.
Electric-car association Nio (NIO), that went open in New York final week, yo-yoed on a initial day of trade and afterwards soared 76% a next. It’s now trade 35% above a IPO price.
News aggregator Qutoutiao’s (QTT) share cost some-more than doubled on a Nasdaq entrance on Friday, though afterwards plunged 35% on a second day. Online selling height Pinduoduo (PDD) has also had a array of double-digit gains and waste given it listed in July.
All 3 companies are now trade good above their IPO prices, jolt off concerns about a trade fight and China’s negligence economy that have weighed on Chinese tech bonds recently.
The ‘Amazon of services’
Meituan, that likes to call itself a “Amazon of services,” is benefiting from Chinese consumers’ unrestrained for doing as most as probable by their phones.
The Beijing-based startup was shaped in 2015 by a partnership of dual smaller companies — Meituan and Dianping — that were noticed as China’s equivalents of Groupon (GRPN) and Yelp (YELP).
The association skeleton to use a money from a IPO to ascent a technology, rise new products and services, and make acquisitions and investments. Meituan done headlines progressing this year by shopping Chinese bike-sharing association Mobike in a understanding reportedly value around $3 billion.
Meituan has some big-name investors, including Google (GOOG) and Tencent (TCEHY). But it’s competing with some of China’s tech heavyweights like Alibaba (BABA) and ride-hailing organisation Didi Chuxing.