Chinese e-commerce platform Pinduoduo debuts on Nasdaq
Chinese online group discounter Pinduoduo Inc. started trading on Nasdaq Stock Market on Thursday.
The company, trading under the ticker symbol of "PDD", announced its IPO of 85,600,000 American depositary shares at a price to the public of US$19.0 per ADS for a total offering size of approximately US$1.63 billion, assuming the underwriters do not exercise their option to purchase additional ADSs.
Each ADS represents four Class A ordinary shares of the Company.
Pinduoduo started trading at US$26.50 per share on Thursday, climbing 34.37 percent from its pricing, and was traded at US$25.53 apiece around midday.
The fund raised will be used mainly to expand the company's business operations, promote research and development, and enhance its technology infrastructure, said its prospectus.
Founded in 2015, the e-commerce platform provides buyers with value-for-money merchandise and interactive shopping experiences.
It has become one of the leading Chinese e-commerce players in terms of gross merchandise volume and the number of total orders.
Its GMV in the twelve-month period ending June 30, 2018 was 262.1 billion yuan. Meanwhile, the number of total orders placed on Pinduoduo mobile platform reached 7.5 billion during the same period, according to its prospectus.
Credit Suisse, Goldman Sachs, China International Capital Corporation and China Renaissance acted as joint bookrunners for the offering.