Chinese online grocery platform Dingdong Macai successfully raised US$95.7 million in its initial public offering, making its debut on the New York Stock Exchange.
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The Shanghai company raised the amount after selling 4.07 million American depositary shares (ADS) at US$23.50, the bottom of the range it had told investors to expect, according to a report by Barrons.
In June, Dingdong had originally filed to offer 14 million ADS at US$23.50 to US$25.50, before cutting the total to 3.7 million the day before its stock market entry, where it then corrected the amount to 4.07 million.
On its first day of trade, Dingdong shares popped more than 25 percent, then gave it almost all back by the time the market closed, ending flat.
Meanwhile, rival firm Missfresh also went public last week and promptly fell more than 25% on its first trading day.
Dingdong’s U.S. IPO debut comes on the back of a US$700 million Series D funding round in April for Dingdong, lead by Cygnus Equity. It is already backed by venture capitalist Sequoia Capital China.
Founded in 2017, Dingdong Macai, which means ‘Dingdong buys vegetables’ in Chinese, lets users via an app buy fresh produce, meat, seafood and other daily necessities.
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In its most recent trading update, Dingdong saw losses widened to US$211.4 million for the quarter ended 31st March, from losses of US$37.7 million for the same period in 2020. Revenue rose 46% to US$587 million, it said.