Home » Dingdong Maicai officially landed on the New York Stock Exchange to reduce the amount of funds raised on the eve of its listing-China Economic Times-China Business Network

Dingdong Maicai officially landed on the New York Stock Exchange to reduce the amount of funds raised on the eve of its listing-China Economic Times-China Business Network

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Our reporter Zhong Chuhan and Jiang Zheng report from Shanghai

On June 29, Dingdong Maicai officially landed on the New York Stock Exchange, and its closing share price rose 0.09%. Prior to this, Dingdong Maicai reduced the amount of IPO funds raised from the originally planned financing of US$357 million to US$94.4 million.

Public information shows that Dingdong Maicai is the leading enterprise in the pre-warehouse model of fresh food e-commerce. It was established in May 2017 and expanded from Shanghai to other cities. It has now entered 29 cities across the country. In 2020, the company will achieve a “Great Leap Forward” in revenue, while its losses are also expanding.

Reduce the amount of funds raised

On June 29, Dingdong Maicai officially landed on the New York Stock Exchange, with an issue price of US$23.5 and a closing price of US$23.52, an increase of 0.09%.

In April and May 2020, Dingdong Maicai had two rounds of financing, and the amount of the two rounds of financing has reached 1.03 billion U.S. dollars. On the eve of the listing, Dingdong Maicai reduced the amount of funds raised from the originally planned financing of US$357 million to US$94.4 million, and the original plan to issue 14 million ADSs was reduced to 3.7 million ADSs. On June 25, before Dingdong Maicai went public, the leading company in the pre-warehouse model of the fresh food e-commerce industry daily Youxian landed on the U.S. stock capital market and broke on the first day of listing.

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Regarding the reason why Dingdong Maicai reduced the amount of funds raised, a new retail business analyst told the “China Business News” reporter: “Dingdong Maicai’s financing target has been reduced, mainly because the subscription is not smooth. The core reason is that the loss is too large. The objective factor is the daily break of fresh produce, which has affected the financing of Dingdong Shopping.”

Relevant data shows that Dingdong’s total income from grocery shopping has increased from 3.888.1 billion yuan in 2019 to 11.33358 billion yuan (US$1.7302 billion) in 2020, a growth rate of 192.2%.

New retail business analyst Yun Yangzi analyzed to reporters: “The core reason for the increase in Dingdong’s revenue from 3.881 billion yuan to 11.33358 billion yuan is the increase in the number of open cities.” The reporter combed through public information, and Dingdong grocery in 2020 Newly entered Beijing, Guangzhou, Nanjing and other regions. According to the information provided by Dingdong Maicai, since its first entry into Shanghai in May 2017, Dingdong Maicai has now expanded its business to 29 cities across the country, of which 5 cities have achieved and maintained more than 100 million yuan per month. The record of RMB GMV (Total Commodity Transaction).

While income has grown substantially, Dingdong’s losses in grocery shopping have also expanded. In 2020, Dingdong Maicai’s loss expanded from 1.873 billion yuan in the previous year to 3.177 billion yuan. In the first quarter of 2021, Dingdong Maicai’s net loss was 1.385 billion yuan, compared with 245 million yuan in the same period last year.

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