Dingdong, an on-demand grocery delivery platform in China, lowered the proposed deal size for its upcoming IPO on Monday.
The Shanghai, China-based company now plans to raise $91 million by offering 3.7 million ADSs at a price range of $23.50 to $25.50. The company had previously filed to offer 14 million ADSs at the same range. Insiders have indicated on up to $200 million worth of ADSs in the offering. At the revised deal size, Dingdong will raise -74% less in proceeds than previously anticipated.
With fresh groceries as its core product categories, Dingdong states that it is the fastest growing on-demand e-commerce company in China, directly providing users and households with fresh produce, meat and seafood, and other daily necessities. The company had a 10% share of the the on-demand e-commerce market by GMV in 2020, and has grown its total GMV at a 300%+ CAGR from 2018 to 2020.
Dingdong was founded in 2017 and booked $1.9 billion in revenue for the 12 months ended March 31, 2021. It plans to list on the NYSE under the symbol DDL. Morgan Stanley, BofA Securities, Credit Suisse, and HSBC are the joint bookrunners on the deal. It is expected to price during the week of June 28, 2021.
