Chinese unicorn Dingdong, backed by SoftBank’s first Vision Fund, is aiming for over $6 billion valuation in its New York debut as the online grocer joins Asian tech startups seeking to tap into the IPO boom in the United States.
The company said it aims to raise up to $357 million in its IPO as it seeks to compete in a crowded sector that has seen established players including Alibaba Group and Pinduoduo competing aggressively.
Dingdong, which is also backed by Tiger Global Management, will sell 14 million American Depositary Shares (ADSs) priced between $23.50 and $25.50 each, according to its filing.
The COVID-19 pandemic has fueled online demand for fresh produce in China. Tencent Holdings Ltd-backed Missfresh, another Chinese online grocery startup, also set its IPO terms earlier on Tuesday, targeting a valuation of nearly $3.8 billion.
Dingdong plans to list its shares on the New York Stock Exchange under the symbol “DDL”. Morgan Stanley, BofA Securities and Credit Suisse are the IPO’s lead underwriters.
Reporting by Niket Nishant in Bengaluru;Editing by Vinay Dwivedi; Reuters