![]() The latest stock price surge has made Pinduoduo’s CEO and founder Colin Huang the third richest man in China after Tencent ( HKEX: 0700)’s Pony Ma and Alibaba ( NYSE: BABA HKEX: 9988)’s Jack Ma. Notably, Pinduoduo and JD.com have taken turns dwarfing each other on market cap multiple times this year. As of June 16, Pinduoduo has a USD 4.4 billion advantage over JD.com. Pinduoduo’s share price closed Tuesday at USD 78, more than doubled the price at the beginning of this year.Īt the same time, e-commerce competitor JD.com has announced that it will raise HKD 29.8 billion (USD 3.8 billion) through its secondary listing on the Hong Kong Stock Exchange on June 18.īoosted by the ongoing annual mid-year online shopping festival “618”, the fast recovery of logistic in the post-coronavirus period, and better-than-expected Q1 earnings reports, both Pinduoduo and its rival JD.com (NASDAQ: JD) have seen their stock prices soar in the past month. On June 16, Pinduoduo reached an all-time high of USD 84, crossing a USD 100 billion market cap for the first time. In April, the company raised more than $3 billion from investors that included Banyan Partners Fund, Tencent, IDG and Sequoia China.The stock price of Chinese social e-commerce giant Pinduoduo ( NASDAQ: PDD) is riding high recently. Pinduoduo’s fast rise has also faced allegations that some products are fakes or substandard, which worries some market observers over its reputation and financial sustainability. The company’s net loss widened to 525 million yuan in 2017 from 292 million yuan the previous year, according to prospectus. Pinduoduo posted revenue of 1.7 billion yuan in 2017, up from 505 million yuan the previous year. It is China’s third-largest e-commerce company in terms of sales, following Alibaba Group Holding Ltd. The number of active buyers on Pinduoduo was 343.6 million by the end of June, surging from 295 million three months earlier, according to an April report by market researcher eMarketer. It is noted for its “group purchase” model that encourages buyers of groceries, electronic devices and other goods to invite their friends to join in shopping to get discounts.īargain lovers flock to Pinduoduo to place orders, with an average order cost of slightly less than 40 yuan ($6), according to the prospectus. Three-year-old Pinduoduo is one of the fastest-growing companies in China’s thriving online shopping industry. ![]() The company’s market cap would exceed $24 billion based on current pricing. ![]() Pinduoduo said it would issue 85.6 million ADRs and will debut Thursday on the Nasdaq Stock Market. ![]() Huang, who is also chairman and CEO of Pinduoduo, holds 46.8% stake in the company, with 89.9% voting rights. Launched in 2015 by ex-Google engineer Huang, Pinduoduo operates a bulk-buying business model similar to Groupon in the U.S. ADRs are negotiable certificates issued by a bank that represent shares of a foreign company. “The oversubscription would allow Pinduoduo to raise its IPO price by 20% to $22.80 per ADR, but the company founder Huang Zheng decided to price at $19,” the source said. ![]() The Pinduoduo flotation was oversubscribed by 20-fold from investors including Fidelity Investments and the sovereign funds of Abu Dhabi, the source said. Pinduoduo, backed by social media giant Tencent Holding, priced the IPO at the top of a range between $16 and $19, according to its latest prospectus released July 17. initial public offering at $19 per American depositary receipt (ADR) to raise as much as $1.63 billion in one of the biggest flotations by a Chinese enterprise this year, a person close to the company told Caixin. Chinese group-buying site Pinduoduo will price its U.S. ![]()
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