Site icon Icarus Signals. The home of economic insight

China’s Meituan Seeks Firepower Boost With $10bn Of New Capital

HONG KONG — Chinese food delivery company Meituan is raising $10 billion from a sale of stock and convertible bonds as it bolsters its firepower against Alibaba Group Holding in the emerging battlefield of community-group buying.

Meituan, in which Tencent Holdings holds a 17.7% stake, plans to use the new funds for the development of autonomous delivery vehicles, drone delivery services and other technology innovation, a term sheet showed.

The company aims to raise as much as $7 billion from the stock offering, including $400 million worth that would be privately placed with Tencent. The rest of the funds would come from a convertible bond, according to the term sheet.

Meituan, which posted a net loss of 2.2 billion yuan ($337.3 million) in the fourth quarter as it invested in new businesses, is keen to further its costly expansion into community-group buying. Read more…..

Chart of the Day

Icarus TV

“The house of pleasure has walls made of traditional stocks that hold up under scrutiny, but the house of pain has been falling apart,” the “Mad Money” host said.

Icarus Signals. The home of economic insight

Back to top