Dingdong Maicai, which filed its IPO application with the United States Securities and Exchange Commission on the same day as competitor MissFresh, is cutting its IPO target by a whopping 74%, looking to raise USD 94.4 million instead of its original USD 357 million goal, Reuters reported.
The Shanghai-headquartered online grocer counts SoftBank among its investors. It is a household name that carries 10,000 SKUs for its customers. The company promises speedy delivery in the cities where it operates—at least 29 in all, with around 950 warehouses in its network. Dingdong’s founder, Liang Changlin, likens the online grocery space to a military campaign, where one’s “barrage must be unrelenting, reactions must be fast.”
That speedy reaction was applied to Dingdong’s adjusted expectations for its path to floating shares on the New York Stock Exchange. The significant scale-down comes after MissFresh debuted on the Nasdaq and proceeded to plunge by more than 25% on its first day of trading on June 25, then another 10% on Monday, June 28.
Dingdong said it will sell 3.7 million American depositary shares instead of its intended 14 million. The shares will be priced in the band of USD 23.50–25.50 apiece.
Read this: Tech is changing China’s grocery shopping for good