Grocery app Dingdong rings the changes on US IPO target after Missfresh misstep

The SoftBank-backed Chinese operation is now hoping to raise just $94.4 million compared to earlier expectations of up to $357 million after watching rival slump on its market debut

Chinese grocery app Dingdong slashed the size of its initial public offering in the United States on Monday to about a quarter of what it had hoped for earlier.

It is now looking to raise up to $94.4 million, according to a filing, compared with its earlier plan for up to $357 million.

The SoftBank Vision Fund II-backed company said it would be aiming to sell 3.7 million American Depositary Shares (ADSs) priced between $23.50 and $25.50 each. It had earlier said it would be looking to sell 14 million ADSs.

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The downsizing comes after rival grocery app Missfresh Ltd, backed by Tencent Holdings Ltd, plunged on its market debut last week.

After opening 18% below the offer price of $10 per ADS on Friday, shares of Missfresh have slumped further to $8.75 per ADS in late afternoon trading on Monday, almost 33% below their IPO price.

Morgan Stanley, BofA Securities and Credit Suisse are the lead underwriters for the Dingdong IPO.

Reporting by Reuters

Chinese grocery apps Dingdong and MissFresh race for US IPOs

Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.