It's called China's Everything app, and hundreds of millions of people use it. And on Thursday, a Hong Kong IPO valued it at $55 billion. Meituan Dianping will deliver your food, sell you tickets for the cinema afterwards, and then drive you home. Meituan's strong start is partly due to its backing from China's Tencent.
It's also being seen as a sign of investor confidence that Meituan can fight off stiff competition from rivals aligned with China's other tech giant, Alibaba. Reuters breaking news columnist Robin Mack explains.>> So Meituan Dianping operates an all-in-one super app. And there's really nothing like that outside of China.
So think of it as a Grubhub, Yelp, Groupon and Uber all mixed together. So they have things from food delivery to taxi booking to movie tickets.>> All those options in the palm of your hand seem to have investors pretty excited. That's a change from other recent tech IPOs in Hong Kong that have been considered a bit of a flop.
And it seems Meituan might've learned some lessons from those mis-steps.>> Meituan Dianping seems I've done two things right. Firstly, they really anchored expectations early on. So their IPO valuation of $53 billion was largely in line with what was expected. Now that's quite different to, say
that listed at a valuation of nearly half of the mooted $100 billion target that was touted earlier on.
So secondly Meituan has a list of pretty big name cornerstone investors, including Ten Cent, as well as Oppenheimer Funds. So that has helped the company build support across other institutional investors as well.>> While Thursday's launch went well, there are still questions about Meituan's business model. The company lost more than $3 billion in the first four months of 2018, that's despite a big jump in revenue.
It's all good news for Hong Kong's stock exchange, though, with a long list of Chinese tech companies ready to launch IPOs here.