Meituan Dianping falls short of IPO target

Business | Avery Chen and Reuters 12 Sep 2018

Meituan Dianping has not been fully subscribed in the retail tranche of it initial public offering, with margin financing closing yesterday.

Thirteen brokerages lent out about HK$1.50 billion for the Chinese online delivery giant's IPO, which accounted for 86 percent of its fundraising goal of HK$1.73 billion, according to a market source.

On the same day, Haidilao International, one of China's most popular hotpot chains, is seeking up to US$963 million (HK$7.51 trillion) in its Hong Kong IPO to fund its international expansion.

Zhou Zhaocheng, Haidilao's chief strategy officer, told a press conference in Hong Kong yesterday that the company plans to open about 200 new restaurants in 2018, between 15 and 20 of which would be outside China.

When asked about recent safety issues of Xiabuxiabu Catering Management China (0520), Phillip Capital Management director Louis Wong Wai-kit said the scandal would not have a big impact on Haidilao, as it was an isolated case and doesn't mean the whole industry has the same food security problem.

Wong said hot pot is the most popular food in the mainland, according to China's 2018 catering industry report. Both companies are still in the stage of rapid expansion.

Meanwhile, Chinese investment bank China Renaissance has reportedly attracted Ant Financial, an online financial affiliate of Alibaba, LGT Group Foundation and Snow Lake Capital as cornerstone investors.

Also, Xin Yuan Enterprises (1748), an asphalt tanker chartering services provider, started taking orders for an IPO on Tuesday, offering one billion shares at between HK$1.29 and HK$1.76. The minimum investment was HK$3,555.48.

Financial controller Lin Shifeng said the Sino-US trade war would not have a direct impact on the asphalt tanker chartering industry as asphalt is used for infrastructure construction and road maintenance and is less affected by the economic cycle.

Search Archive

Advanced Search
April 2019

Today's Standard

Yearly Magazine

Yearly Magazine