Meituan-Dianping, a China-based local services platform backed by corporates including Tencent and Priceline, plans to go public in the US, Reuters reported today citing five people with knowledge of the matter.
The initial public offering could take place as soon as 2018, according to one source, and the company would seek to raise at least $3bn. It was valued at $30bn as of a $4bn funding round led by internet group Tencent that closed last month.
Formed by the 2015 merger of group buying service Meituan with local reviews and listings platform Dianping, the combined company acts as an online portal to a range of services including ride hailing, food delivery and event ticketing.
Meituan-Dianping has begun talks with advisors as it prepares to move toward the IPO, but has not selected banks, one of the sources told Reuters.
A company executive told Reuters in July this year it would consider going public once it had put together the organisational infrastructure for services such as brick-and-mortar retail. Its key areas are lifestyle and entertainment, on-demand delivery, travel and leisure, and in-store dining.
A source told Reuters this week: “The listing plans are more driven by the investors as several of them look to cash out after years of investments. But the company is not in a rush to go public as it does not lack capital for development.
Meituan-Dianping has so far raised approximately $9.9bn in funding, each of the constituent companies having raised a 10-figure total at the time of the merger agreement.
Travel services provider Priceline also took part in the $4bn round, along with the Singaporean government’s GIC, Sequoia Capital, IDG Capital, Tiger Global Management, Canada Pension Plan Investment Board, Trustbridge Partners, Coatue Management and China-UAE Investment Cooperation Fund.
The company’s other investors include smartphone maker Xiaomi, conglomerates Fosun and Wanda, General Atlantic, Hillhouse Capital, Fidelity Management and Research, Northern Light Venture Capital, Walden International, Temasek, FountainVest Partners, Qiming Venture Partners and Lightspeed Venture Partners.