On July 26, it was reported that pinduoduo, a social e-commerce company, would be listed in the US stock market tonight, Beijing time, and its IPO price was also determined this morning at $19, equivalent to about $24 billion of market value.
In June, pinduoduo submitted a prospectus to the SEC to raise up to $1 billion through an IPO. On July 17, Pinto Duoduo submitted an updated IPO prospectus to the CSRC, raising the proposed maximum financing amount from US $1 billion to US $1.87 billion, with an offering price range of US $16-19. The underwriters are Goldman Sachs, Credit Suisse, CICC and Huaxing capital.
According to the content of the prospectus, at present, pinduoduo's revenue mainly comes from online market services. In 2017, Gmv was 141.2 billion yuan and active buyer users were 245 million yuan. In the first quarter as of March 31, 2018, pinduoduo's revenue increased to RMB 1384.6 million (about USD 220.7 million) from RMB 37 million in the same period of last year; its operating loss was RMB 253.1 million (about USD 40.3 million), compared with RMB 215.9 million in the same period of last year; its net loss was RMB 201 million (about USD 32 million), compared with the same period of last year The net loss for the same period of the previous year was 207.7 million yuan.
In addition, Huang Zheng, the founder, chairman and chief executive officer of the company, beneficially holds about 2.1 billion shares of common stock, accounting for 50.7%; Shen NANPENG beneficially holds about 180 million shares of common stock, accounting for 4.4%; Tencent affiliated entities beneficially hold about 750 million shares of common stock, accounting for 18.5%; banyan partners Funds beneficially holds about 410 million ordinary shares, with a shareholding ratio of 10.1%; Sequoia Capital's funds beneficially holds about 300 million ordinary shares, with a shareholding ratio of 7.4%.