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Banking & finance
BusinessBanking & Finance

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 is selling shares in a range of HK$265 to HK$274 each. Photo: Reuters
Alison Tudor-Ackroyd

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.

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.

Drones are becoming an efficient way to carry packages on the “last mile” of delivery.
Drones are becoming an efficient way to carry packages on the “last mile” of delivery.

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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The six-year convertible bonds come with an investor put in year four, while the seven-year convertible bonds are puttable in year five, the terms sheet showed.

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