Categories LATEST

Another Chinese e-commerce firm readies for US listing

Alibaba’s (BABA) dominance in the e-commerce space in China has lately been rattled by numerous domestic rivals, primarily Pinduoduo. While Alibaba caters to the wealthy shoppers, Pinduoduo found its niche target among the low-income population. This fast-growing app, which is today a unicorn, is now hoping to raise at least $1.63 billion from a US listing.

Backed by Tencent Holdings Ltd and Sequoia Capital, the Shanghai-based startup combines bulk-buying business concepts of apps such as Groupon (GRPN). In an SEC filing, the company stated its plans to list its shares on the NASDAQ exchange under the ticker PDD.

Set up by former Google engineer Colin Huang in 2015, Pinduoduo is looking to sell about 85.6 million American Depositary Shares in an IPO, according to Reuters. The price range is set at $16 to $19 per share, which would value the company at around $20 billion. In 2017, the company reported a three-fold increase in its revenue to $261 million though losses more than doubled for the same period. The social e-commerce firm boasts of having 103 million mobile monthly active users at the end of March.

Related: Alibaba continues to invest in Southeast Asia

This stunning growth of Pinduoduo is likely to have an impact on Alibaba. As a retaliatory measure, Alibaba is now focusing on China’s towns and villages by expanding its rural Taobao program. Alibaba has also invested $717 million in an e-commerce company, Huitongda Network, which is known to sell appliances in rural China.

Besides these Alibaba has now released a discount app for budget shoppers. When the enemy arrives, Alibaba will be ready.

Related: Chinese e-commerce mammoth Alibaba plans to list in China

Most Popular

Key highlights from Halliburton (HAL) Q1 2021 earnings results

Halliburton Company (NYSE: HAL) reported first-quarter 2021 earnings results today. Total revenue decreased by 31% to $3.45 billion from $5.03 billion year on year. The company had a net income

Key highlights from Intuitive Surgical (ISRG) Q1 2021 earnings results

Intuitive Surgical, Inc. (NASDAQ: ISRG) reported first quarter 2021 earnings results today. Revenues increased 18% year-over-year to $1.29 billion, driven by growth in da Vinci procedures and system placements. GAAP net income

Earnings Infographic: Netflix (NFLX) subscriber growth slows; Q1 results beat

Netflix, Inc. (NASDAQ: NFLX) Tuesday said its first-quarter 2021 earnings more than doubled. Both revenues and profit topped the Street view, but the streaming giant's subscriber growth decelerated. At the


Add Comment
Viewing Highlight