Investors Gain Billions From Chinese Tech IPO

WSJ.com: WSJD - Technology

The IPO also boosted the value of stakes held by Tiger Global Management LLC, Hillhouse Capital Group and a few other firms several times over, to more than $1 billion each, according to calculations based on filings. Even recent backers have made large paper profits from Meituan, whose app is used by hundreds of millions of people in China to order meals online, post restaurant reviews and buy movie tickets. An investment about a year ago by Booking Holdings Inc., the company formerly known as Priceline, jumped more than 50% to roughly $700 million as of Thursday, based on the Beijing-based company's now $51.5 billion market valuation. The windfalls show there are still outsize returns to be made in China's internet boom, despite this year's downturn in markets in Asia and the tumbling share prices of Alibaba Group Holding Ltd., Tencent Holdings Ltd., Baidu Inc. and other Chinese technology majors. Meituan itself has also fallen about 3% from its IPO price, while Chinese smartphone maker Xiaomi Corp., which went public in July, is down 6%.


China's third-largest ecommerce site faces lawsuits in US over alleged counterfeits

ZDNet

Pinduoduo, the third-largest ecommerce website in China after Alibaba and JD.com, is facing class-action lawsuits in the US following recent media reports that it has been selling fakes and knock-offs over the platform resulted in share tumbles. Six law firms, including Rosen Law Firm, Pomerantz LLP, Law Offices of Howard G. Smith, Faruqi & Faruqi LLP, The Schall Law Firm, and Bronstein, Gewirtz & Grossman LLC, are looking to file class-action lawsuits on behalf of individual investors who bought Pinduoduo shares, according to a Sina news report on Saturday. Pinduoduo has faced a flood of media reports in China since its initial public offering (IPO) in New York claiming that the platform has been actively selling low-price knock-offs with a high resemblance to brand names of well-known products. Law Offices of Howard G. Smith said on its website that it believes Pinduoduo and certain executives violated federal law, which specifically misled investors regarding its financial condition. Pomerantz LLP said it's investigating concerns whether Pinduoduo and its officers and/or directors have engaged in securities fraud or other unlawful business practices.


Three-year-old Chinese ecommerce website files for $1b IPO in US

ZDNet

Pinduoduo, the third-largest ecommerce website after Alibaba and JD.com in China, has filed for an initial public offering in the US to seek as much as $1 billion on Friday, in a move that surprised the market as the company was established less than three years ago. Founded in September 2015 by a former Google software engineer Colin Huang, the Shanghai-based company is known for its Groupon-like business model, which encourages consumers to shop for similar daily necessities with friends and other netizens in order to receive big discounts on prices, as mechanizers are able to offer cheaper prices due to the large quantities. Underwriters of Pinduoduo's US listing include UBS, Goldman Sachs, and CICC, but the company is yet to determine the stock exchange that will host its initial public offering, according to a Sina news report on July 1. Revenue of Pinduoduo mainly comes from online advertisements and trade commissions. Since its inception, revenue has grown at a high rate, as have losses, according to the report.


Three Chinese Tech Companies Make It To Wall Street, 2 Backed by Tencent

Forbes - Tech

China's social e-commerce startup Pinduoduo broke away from the pack with its successful IPO this week in New York, raising $1.6 billion and valuing the company at nearly $30 billion. Pinduoduo, best known of the newly public Chinese tech companies, was one of three that went public in a frenzy of IPO action this past Thursday in New York -- and in the midst of a U.S.-China trade war and growing restrictions on Chinese investment in the U.S. The two other new publicly traded Chinese companies in New York are Chinese unicorn and mobile data provider Jiguang and automotive transaction service platform Cango. Interestingly, both Pinduoduo and Cango have Tencent as backers. I'll write about the two lesser known ones of the trio since so much info is already out there about the three-year-old Pinduoduo, seen as Alibaba's biggest rival. And the others are almost as interesting as Pinduoduo, which has been likened to Groupon meets Dollar Store.


Chinese Online Group Pinduoduo Targets up to $1.63 Billion in U.S. IPO

U.S. News

Thanks to its low-priced products and larger user base in China's smaller cities, the company's gross merchandise volume exceeded 100 billion yuan last year, a milestone for Chinese e-commerce firms that took Alibaba's Taobao marketplace five years and JD.com 10 years to reach. Pinduoduo's revenues have grown sharply, reaching 1.38 billion yuan ($206.4 million) in the first quarter of 2018 from 37 million yuan a year ago. Net losses, however, remained broadly steady at 201 million yuan.