Chinese fresh vegetable e-commerce app Dingdong Maicai is seeking to raise $500 million from its United States initial public offering. This has been revealed by people directly involved in the matter.
According to the sources, the online grocery app is seeking to capitalize on this IPO to compete in what it calls a ‘crowded industry’.
Dingdong said it filed for the IPO with U.S market regulators on June 7, however the company failed to disclose specific details about the IPO like the size of the IPO or the targeted market valuation of the company after the offering.
Nonetheless, the sources involved with the matter that declined being revealed due to privacy of the matter, said the company is aiming to have a market valuation of $6 billion after the offering.
The source was quick to caution that a final valuation target had not been reached upon since this can change anytime depending on market feedback. The source further added that the company is planning to open books for the IPO in two weeks’ time and the IPO could happen end of this month.
With the pandemic, online demand of fresh produce has been increasing in China major Chinese companies in the sector like Pinduoduo (PDD), Alibaba Group (BABA) and Dingdong have been scrambling to capitalize on this demand increase.
According to documents submitted to the regulator, Dingdong plans to get listed on the New York Stock Exchange with its shares trading under the ticker symbol ‘DDL’.