What’s new: Chinese food-delivery giant Meituan is considering a secondary listing on the Chinese mainland and is consulting with multiple brokerages, Caixin learned from two market participants familiar with the matter.
Hong Kong-listed Meituan has been in contact with the Shanghai Stock Exchange and the Shenzhen Stock Exchange, one person close to Meituan said. Meituan is considering a listing on either Shanghai’s Nasdaq-style STAR MARKET or Shenzhen’s ChiNext, the person said.
Meituan has approached Citic Securities, Huatai Securities and Huajing Securities for the listing, according to another source.
In response to a Caixin enquiry, Meituan said it has neither plans nor a timetable for a secondary listing on the mainland.
The background: The Tencent-backed company went public in Hong Kong in 2018, raising $4.2 billion in an initial public offering priced at HK$69 ($8.90) a share. Its shares are now traded at HK$297.
As one of China’s two largest food delivery services, Meituan competes head-to-head with Alibaba-owned Ele.me. As the two rivals battle to lure customers using generous subsidies, Meituan’s profitability remains unstable.
The company reported a profit of 2.2 billion yuan in the second quarter. But Chief Executive Officer Wang Xing has repeatedly stressed that profitability is not his short-term priority and the company will continue to expand investment rather than seeking short-term financial returns.
Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bobsimison@caixin.com).
Related: In Depth: China’s Takeout Wars — Is Meituan Set to Eat Alibaba’s Lunch?
