Chinese takeaway giant Meituan is doubled to compete with companies such as Alibaba in a renewal field such as Internet groceries. It has also raised about $ 10 billion (S $ 13.291 billion) funds through the issuance of new shares and convertible bonds.Essence
According to Bloomberg report, the transaction document obtained by the reporter shows that the third largest Internet company in China sold 187 million shares in the method of sale, the price was HK $ 273.8 ($ 46.85) per share, close to the promotion rangeAt the top, it raised $ 400 million in funds from the shareholders Tencent Holdings.According to the data compiled by Bloomberg, the issuance of the 7 billion US dollars of new shares is the highest on the size of the companies listed in Hong Kong.Meituan also issued a zero -interest convertible bond of about 3 billion US dollars.
The issue price of new shares is 5.3%lower than the US Tuan's closing price on Monday.Files show that convertible bonds are divided into two parts: $ 1.48 billion in six -year bills and $ 1.5 billion of seven -year bills.
Companies such as Alibaba and Pinduoduo compete in the renewal fields such as community e -commerce and Internet groceries, bringing costs to Meituan.The company has warned that although the income reached a record high, it will also lose several quarters due to a large expenditure on new projects.
Kamet Capital Partners PTE Chief Investment Officer Jiali (transliterated from Kerry Goh) said: "They are entering new fields, including group purchases. Those areas require a lot of funds. They need ammunition to compete.Compared to, the valuation is still quite good. "
Files show that Meituan plans to use raised funds for technological innovation, including developing automatic distribution vehicles, drone delivery and other cutting -edge technologies, as well as general company use.
One of the main expansion areas of Meituan is community procurement. Consumers in the same community can enjoy large discounts on fresh agricultural products.But the company is facing fierce competition from other Internet giants.
After the performance of Meituan last month, the three major rating agencies have lowered their rating outlook for it. S & P and Moody's stated that Meituan's heavy investment in community e -commerce will generate high costs, thereby generatingNegative free cash flow and damage profit.
