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Ding Dong CEO Liang Changlin commented that he plans to utilize the proceedings gained in the IPO for expanding his company’s business operations
Chinese grocery delivery service Ding Dong has secured a rise in the US IPO market by 2 cents. The company is known to have been harboring investments from tech giants such as Alibaba, Meituan, and JD.com.
The rise has been registered shortly after a surge that has been noticed in the Chinese Stock Listings in the US. The performance of Ding Dong in the US IPO market has instigated the concept of the grocery industry having potential for growth and prosperity in the domain of stock and investments.
After making an initial cut in their IPO size by a significant 70%, Ding Dong was able to secure a rise in its prices by 2 cents in the US market. The company in its initial offering had attained US$ 5.5 billion as a legitimate market value price. In simpler terms, the price earned was more than the double value of Tencent-backed rival Missfresh which had experienced a fall of 25% in their Nasdaq debut on Friday.
Ding dong had disclosed their prices earlier this week on New York Stock Exchange (NYSE) with an active price of their IPO listed as US$ 23.50. With fewer than 30% of the initial share range, the company managed to amass US$ 95.69 million.
Ding Dong CEO Liang Changlin Plans to Use IPO Proceeds to Expand His Company
Ding Dong CEO Liang Changlin commented that he plans to utilize the proceedings gained via these investments in expanding his company’s business operations and further seek investments in technology and talent acquisitions.
Changlin also addressed the fact that his company has been self-sufficient in cash flow methodologies and considers the IPO achievement as a milestone in his official company career. With a consistent cash flow amounting to US$ 226.56 million (1.45 billion yuan), the company is all set to manage its financial affairs and operations for the next 12 months with considerable ease and safety.
Ding dong operates in 29 cities in China with active 6.9 million users. The company also boasts an average gross merchandise value of 4.3 billion yuan. Earlier SoftBank had invested in Ding Dong with an investment worth US$ 330 million, following another investment of US$ 700 million from Coatue.