Deals

Unprofitable Tencent-Backed Meituan Takes Orders for $4.4 Billion IPO

Online giant says no guarantee it will ever be profitable
Losses surged after acquisition of bike-sharing app Mobike

Views of Meituan Dianping Applications As Company Is Said To Seek an IPO At $60 Billion — Photographer: Justin Chin/Bloomberg

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By Crystal Tse and Lulu Yilun Chen

September 4, 2018 at 12:53 AM UTC

Updated on

September 4, 2018 at 9:32 AM UTC

This article is for subscribers only.

Meituan Dianping started taking orders for a Hong Kong initial public offering that could raise as much as $4.4 billion as it warned there was no guarantee it would ever become profitable.

The restaurant review and delivery giant backed by Tencent Holdings Ltd. is offering 480.27 million new Class B shares at HK$60 to HK$72 apiece, according to terms for the deal obtained by Bloomberg on Tuesday. Five cornerstone investors including Tencent have agreed to buy a combined $1.5 billion of stock in the offering, the terms show.