Dingdong valued at $6.6 billion as shares rise 19% in NYSE debut

Platform News: Dingdong

Shares of Dingdong, backed by SoftBank Vision Fund II, opened 19% above their offer price in their debut on the New York Stock Exchange, giving the Chinese grocery app a valuation of $6.6 billion.

The stock opened at $28 per share, up from the initial public offering price of $23.50. At that valuation, Dingdong would be worth 29% more than the $5.1 billion it was valued at after the Japanese conglomerate invested in it last month.

Earlier, the company raised $95.7 million, selling more than 4 million American depositary shares. The pricing was at the lower end of a range announced earlier.

The IPO size was slashed to almost a fourth of Dingdong’s initial target, indicating a lukewarm response from investors despite a sustained mania for new listings in the United States.

Established in 2017 and backed also by Tiger Global Management and Sequoia Capital, Dingdong operates mainly in China’s first-tier cities including Shanghai, Beijing, Shenzhen and Hangzhou.

Morgan Stanley, BofA Securities and Credit Suisse were the lead underwriters.

The team at Platform Executive hope you have enjoyed the ‘Dingdong valued at $6.6 billion as shares rise 19% in NYSE debut‘ article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Jonathan Landay. Editing by Steve Orlofsky.

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