Meituan Raises $10 Billion to Fight Alibaba in Grocery Arena

Co. raised funds via share placement, convertible bonds sale
Largest-ever sale of new shares by a Hong Kong-listed company

WATCH: Meituan raised about $10 billion from the sale of new stock and convertible bonds as it doubles down on efforts to fight the likes of Alibaba Group Holding Ltd. in newer areas such as online groceries.(Source: Bloomberg)

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By Julia Fioretti

April 19, 2021 at 9:19 AM UTC

Updated on

April 20, 2021 at 2:35 AM UTC

This article is for subscribers only.

Chinese delivery giant Meituan has raised $9.98 billion from a record top-up placement and a convertible bonds sale as it doubles down on efforts to fight the likes of Alibaba Group Holding Ltd. in newer areas such as online groceries.

The nation’s third-largest internet company has sold 187 million shares in a top-up placement at HK$273.80 each, near the top end of its marketed range, and also raised $400 million from shareholder Tencent Holdings Ltd., according to terms of the deal obtained by Bloomberg News. The $7 billion new stock issuance is the largest-ever such sale by a Hong Kong-listed company, data compiled by Bloomberg show. Meituan has also sold $2.98 billion in zero-coupon convertible bonds.