Major Chinese Online Firm Sets HK IPO Valuation at Up to $55b

China’s Meituan-Dianping, an online food delivery-to-ticketing services platform, has set an indicative price range of HK$60 to HK$72 ($7.64-$9.17) per share for its initial public offering in Hong Kong, valuing itself at up to $55 billion, four people with direct knowledge of the matter said. Meituan, already one of China’s most valuable Internet firms, could raise as much as $4 billion before the exercise of a over-allotment option, whereby additional shares are sold depending on demand, Reuters reported. The company is discussing a valuation of $46 billion to $55 billion and is planning to secure a total of $1.5 billion from five cornerstone investors, including its main backer gaming and social media company Tencent Holdings Ltd, and global asset manager OppenheimerFunds, the people said.