Chinese grocery app Dingdong, backed by SoftBank Vision Fund 2, raised about $95.69 million in its U.S. initial public offering (IPO) on Tuesday after slashing the size of the IPO to almost a fourth of its earlier target.
Dingdong sold more than 4 million American depositary shares (ADSs) priced at $23.5 apiece, the lower end of its indicative price range.
The company had earlier planned to raise up to $357 million in its IPO by selling 14 million ADSs priced between $23.5 and $25.5.
Established in 2017 and also backed by Tiger Global Management and Sequoia Capital, Dingdong operates mainly in China’s first-tier cities such as Shanghai, Beijing, Shenzhen and Hangzhou.
Rival online grocery company Missfresh Ltd, which is backed by Tencent Holdings Ltd, slumped in its Nasdaq debut last week. It was trading almost 17% below its IPO price until Monday’s close.
Morgan Stanley, BofA Securities and Credit Suisse were the IPO’s lead underwriters.
Dingdong’s ADSs are set to begin trading on the New York Stock Exchange later in the day under the ticker symbol “DDL”.