Business

SoftBank-backed Dingdong slashes US IPO target by over 70%

A delivery worker of Chinese online grocery Dingdong Maicai is seen on a street in Shanghai
A delivery worker of Chinese online grocery Dingdong Maicai is seen on a street in Shanghai, China, on Jun 10, 2021. (Photo: REUTERS/Aly Song)
(Updated: )

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NEW YORK: Chinese grocery app Dingdong, backed by SoftBank Vision Fund II, on Monday (Jun 28) slashed the size of its initial public offering in the United States to about a fourth of what it had aimed for earlier.

It is now looking to raise up to US$94.4 million, according to a filing, compared with its earlier plan for up to US$357 million.

The company said it would be aiming to sell 3.7 million American Depositary Shares (ADSs) priced between US$23.50 and US$25.50 each. It had earlier said it would be looking to sell 14 million ADSs.

The downsizing comes after rival grocery app Missfresh Ltd, backed by Tencent Holdings, plunged in its market debut last week.

After opening 18 per cent below the offer price of US$10 per ADS on Friday, shares of Missfresh have slumped further to US$8.75 per ADS in late afternoon trading on Monday, almost 33 per cent below their IPO price.

Morgan Stanley, BofA Securities and Credit Suisse are the lead underwriters for the Dingdong IPO.

Source: Reuters