On-demand delivery giant Meituan (HKEX: 3690) is raising USD 10 billion by offering shares and convertible bonds, according to a filing with the Hong Kong Stock Exchange on Tuesday.
The Beijing-based company said that it intends to use the proceeds “for technology innovations, including the research and development of autonomous delivery vehicles, drone delivery, and other cutting-edge technology.”
Tencent, one of Meituan’s biggest and earliest backers, will subscribe to approximately USD 400 million worth of Meituan shares. After the placement is completed, Tencent will remain Meituan’s biggest institutional shareholder with a 17.2% stake, a slight drop from its original 17.7% holdings.
In recent years, various internet giants have moved into the localized lifestyle and travel space, which are the core of Meituan’s business.
ByteDance’s blockbuster app Douyin, for example, has introduced multiple features since 2019, including digital maps, rankings of local eateries, coupon sales, travel bookings, and even launched its own e-payment service. Alipay became a “digital life open platform” last year in March, as it added services in partnership with Ele.me, Meituan’s major competitor in the food delivery business.
Read this: VIDEO | The true cost of online food ordering and delivery
This article is part of KrASIA’s “Key Stat” series, where KrASIA picks and presents the most significant figures of the day’s technology and business world.
