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China’s Meituan raising US$10 billion from sale of shares, convertible bonds in food-delivery giant
- Meituan is selling shares in a range of HK$265 to HK$274 each, a discount to Monday’s closing price
- Sale includes US$3 billion in convertible bonds in two tranches, due in 2027 and 2028
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Meituan, China’s largest food delivery platform, is raising about US$10 billion in a flash sale on Monday of shares and convertible bonds.
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The sale of 3.2 per cent of Beijing-headquartered Meituan is in a range of HK$265 (US$34) to HK$274 each, a discount of 5.3 per cent to 8.4 per cent to its closing price of HK$289.20 on Monday, according to a terms sheet seen by the Post. The primary, top-up placement of 187 million shares could raise between US$6.376 billion and US$6.593 billion.
It is also offering up to US$3 billion worth of zero-coupon convertible bonds in two tranches, one due in 2027 and the other maturing in 2028.
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Meituan plans to use the proceeds for the research and development of autonomous-delivery vehicles, drones delivery and other innovations, as well as for general corporate purposes.
Shenzhen-headquartered technology giant Tencent Holdings has undertaken to subscribe up to US$400 million worth of Meituan shares at the same price as the top-up placement.
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