Meituan Dianping files for IPO in Hong Kong, Tencent is largest shareholder
摘要： Similar to Xiaomi's Hong Kong IPO, Meituan Dianping also adopts dual-class share structure.
Meituan Dianping filed for IPO in Hong Kong on June 25. Goldman Sachs Group, Morgan Stanley and Bank of America Merrill Lynch are sponsors of the IPO, and China Renaissance Group is the financial advisor. The startup targets a fundraising of USD 6 billion at a valuation of about USD 60 billion.
The prospectus shows that Meituan Dianping realized operating revenues of RMB 4 billion, RMB 13 billion and RMB 33.9 billion annually from 2015 to 2017, representing year-on-year increases of 223.2% and 161.2%. Its revenue surged by over 700% in three years. The company's adjusted net loss decreased from the RMB 5.9 billion in 2015 to RMB 5.4 billion in 2016, and further dropped to RMB 2.8 billion, totaling RMB 14.1 billion in three years.
Meituan Dianping's offerings cover a broad range of life scenarios corresponding to four big location-based service (LBS) categories: in store, at home, on trip, and on road. In 2017, the company's food delivery business had a profit margin of 8.1%, and its in store and travel businesses had a profit margin of 88.3%. The company realized a 46% profit margin in new business.
The number of Meituan Dianping users reached 310 million in 2017, with the average annual transactions per user increasing from 10.4 in 2015 to 18.8. The number of Meituan's online participating merchants had increased from the 3 million in 2015 to about 5.5 million in 2017, of which 4.4 million were active merchants last year. Meituan's transaction value amounted RMB 357 billion in 2017, with 5.8 billion transactions. The number of active users totaled 289 million in December 2017.
Tencent now owns 20.14% of Meituan as the largest shareholder. Sequoia Capital holds 11.44% of the company and Alibaba holds about 1.48% (74,352,299 shares). Being founders and Class A shareholders of Meituan, Wang Xing owns 573 million shares or 11.44% of the company, Mu Rongjun and Wang Huiwen hold 126 million (2.51%) and 36.4 million Class A shares (0.7264%) respectively.