Meituan-Dianping, a China-based local services platform backed by corporates such as Xiaomi, Fosun and Tencent, has entered discussions about an initial public offering in Hong Kong as soon as this year, Bloomberg reported today.
The company is exploring a valuation of at least $60bn, twice that of its last equity funding, in which it raised $4bn in an October 2017 round led by internet company Tencent.
While Bloomberg’s sources did not offer details on how much Meituan-Dianping is hoping to raise, reports in November 2017 suggested it is considering a $3bn target.
Meituan-Dianping was formed through the merger of group buying service Meituan and local reviews and listing site Dianping in 2015. Its online-to-offline portal includes services such as ride hailing, food delivery, travel and event ticketing.
The company processed $57bn in transactions in 2017 between some 320 million consumers and four million merchants. It has received a total of approximately $9.9bn in funding to date, including 10-figure sums raised by each Meituan and Dianping before merging.
The October 2017 round also featured travel services provider Priceline, GIC, Sequoia Capital, IDG Capital, Tiger Global Management, Canada Pension Plan Investment Board, Trustbridge Partners, Coatue Management and China-UAE Investment Cooperation Fund.
The firm’s other shareholders include conglomerates Fosun and Wanda, smartphone maker Xiaomi, Temasek, General Atlantic, Hillhouse Capital, Fidelity Management and Research, Northern Light Venture Capital, Walden International, FountainVest Partners, Qiming Venture Partners and Lightspeed Venture Partners.
A $60bn valuation would put Meituan-Dianping among the most valuable private companies in the world, with ride hailing platforms Uber and Didi Chuxing fetching valuations of $72bn and $56bn valuation as of their last rounds.