Pinduoduo updated his previously submitted prospectus to the Securities and Exchange Commission (SEC) on July 17, Beijing time.
Relevant documents show that Pinduoduo plans to apply for listing in the Nasdaq global selection section.Code: PDD. Pinduoduo's IPO is underwritten by Goldman Sachs Group, Credit Suisse, CICC and China Renaissance Holdings Ltd., and the fiduciary bank is Deutsche Bank.
The company will issue 85600000 American depositary shares (ADS) at a price of $16 to $19 per share.A maximum of 1.87 billion US dollars is proposed..Tencent and Sequoia Capital plan to increase their holdings of up to 250 million US dollars respectively in this round of IPO.
It is expected that after this round of IPO, founder, chairman and CEO Huang Zheng will have 46.8% of the shares and 89.8% of the voting rights, while Tencent will have 17.0% of the shares and 3.3% of the voting rights; Gao Rong will have 9.3% of the shares and 1.8% of the voting rights; and Sequoia will account for 6.8% of the shares and 1.3% of the voting rights.
The updated prospectus reveals that the company plans to use 40% of the money raised to strengthen and expand the company's existing business, 40% will be spent on technology research and development, and the rest will be spent on day-to-day operations and potential investment projects.
Pinduoduo's revenue in the first quarter of 2018 was 1.384 billion yuan ($220 million), with an operating loss of 253 million yuan and a net loss of 201 million yuan, according to the prospectus.