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Meituan is said to seek a US$60b valuation in Hong Kong IPO
[HONG KONG] Meituan Dianping, the Chinese food reviews and delivery giant, has begun discussions on a Hong Kong initial public offering as soon as this year, according to people familiar with the matter.
The company is weighing a valuation of at least US$60 billion and is also considering a listing in China as well if policy conditions allow, the people said, requesting not to be named because the matter is private. Discussions however are at a preliminary stage and the details could change, they added. Meituan declined to comment.
Meituan, already the world's fourth largest startup with a latest valuation of US$30 billion, handled US$57 billion of transactions last year. Formed by the merger of Meituan and Dianping, it's grown into a super-app hawking everything from group-buying deals and ride hailing to travel packages and payments.
It's reported 320 million active annual buyers and more than four million merchants on its e-commerce platform.
The company however faces formidable rivals in each of its key businesses. It's competing with entities backed by Alibaba Group Holding Ltd in food delivery, with Didi Chuxing in ride hailing, and even with its own backer Tencent Holdings Ltd in payments.
Investors also question whether it can sustain growth without a heavy cash burn, one person said.