TOKYO, July 18, 2018 /PRNewswire/ --
Asahi Marusan Management [https://www.ammsecurities.com ] reported this morning that Chinese e-commerce operator Pinduoduo Inc which is backed by Tencent Holdings is planning to raise up to $1.6 billion during its US IPO to bolster its fight against rival Alibaba.
Pinduoduo Inc located in Shanghai, is offering 85.5 million Depositary Shares in the US with a price between $16 and $19 per share. Leading Chinese social media company Tencent and existing shareholder Sequoia Capital have equally expressed interest in buying $250 million worth of stock Asahi Marusan Management [https://www.ammsecurities.com ] added.
Pinduoduo Inc, widely known as PDD is considered to be one of China's most powerful and fastest growing startups. Famous for popularizing a system where people see deals on a variety of products, and can recruit friends in order to get a discount of up to 20% off market prices has led this Chinese Facebook-Groupon mashup to quickly become a major rival to Alibaba.
Founded 3 years ago by Colin Huang, a former Google engineer, this startup is believed to have a top end valuation target of $30 billion, already putting it on par with on-demand services giant Meituan Dianping. Based on that, Pinduoduo Inc may very well be valued at around $20 billion after the IPO launch with Huang remaining in control most of the voting rights.
"Ongoing marketing efforts across the country mean Pinduoduo Inc have yet to turn a profit, making them one of the most ambitious tech companies to go public this year that are still making a loss," said Timothy Grant, Senior Vice President at Asahi Marusan Management [https://www.ammsecurities.com ].
Pinduoduo Inc has handled 262 billion yuan ($39 billion) in transactions for the past year which equates to more than 300 million active buyers. This managed to gain them great growth in their April valuation. The company had a tripling of revenue for 2017 at around $278 million, but the losses are higher too, 55% higher and they are now at $79.5 million!
About Asahi Marusan Management
Asahi Marusan Management is a private wealth management company that provides access to the global financial markets for both corporate and private clients. For additional information visit http://www.ammsecurities.com [https://www.ammsecurities.com ].
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