Meituan attracting tycoons to $4.4B IPO

Meituan Dianping, the Chinese restaurant review and delivery giant, has attracted Hong Kong tycoon Li Ka-shing to an initial public offering that could raise as much as $4.4 billion, people with knowledge of the matter said.

Li, who is Hong Kong's richest man, is planning to buy stock in the offering in his personal capacity, according to the people, who asked not to be identified because the information is private. Thomas Lau, the chairman of department store operator Lifestyle International Holdings Ltd., is also preparing an investment, the people said, without specifying the amounts.

Meituan Dianping started taking orders earlier last week for what is set to be one of Hong Kong's biggest IPOs of 2018. Five cornerstone investors, including existing backer Tencent Holdings Ltd., have agreed to buy a combined $1.5 billion of stock in the offering.

A representative for CK Hutchison Holdings Ltd., which is backed by Li's family, didn't immediately respond to an email seeking comment. A representative for Lifestyle International said Lau has no comment, while Meituan Dianping declined to comment in an emailed statement. Apple Daily reported the planned investments earlier Friday, citing unidentified people.

Meituan Dianping said late last week it planned to keep on investing in money-losing businesses such as food delivery but did dial down its car-hailing ambitions, signaling a willingness to throttle back on a spending frenzy that's pushed it deeper into the red.

SundayMonday Business on 09/09/2018

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