Sina Science and Technology News in the early morning of July 27th Beijing time, social ecommerce Pinduoduo officially landed on Nasdaq under the stock symbol "PDD" with an opening price of US $26.50, up 39.47% from its offering price of US $19. Pinduoduo shares were up $7.80 at $26.8 by the close, up 41.05 per cent from their offering price. Pinduoduo has a market capitalization of $30.531 billion at the closing price.

Pinduoduo filed an IPO prospectus with the Securities and Exchange Commission (SEC) on June 29, EDT. The underwriters of the IPO deal are UBS, Goldman Sachs Group and China International Capital Corporation.

Pinduoduo plans to issue 85.6 million ADS shares in the IPO, raising $1.626 billion at a price of $19 per depositary, with a market capitalization of $21.048 billion, according to the updated prospectus. Among them, Tencent and Sequoia Capital will each increase their holdings by 250 million US dollars in this round of IPO.

In addition, Pinduoduo has 582 million common shares that have been granted and have not yet been exercised. If all share options are exercised after the offering, Pinduoduo will reach 5.013 billion common shares.

Pinduoduo said that IPO underwriters have exercised the over-allotment right and will implement the option to buy an additional 12.84 million American depositary shares (ADS), raising up to US $1.87 billion. If these two factors are added, Pinduoduo's market capitalization will exceed 24 billion yuan.

Huang Zheng, founder of Pinduoduo and CEO

Pinduoduo had a total income of 1.385 billion yuan and a net loss of 201 million yuan in the first quarter of 2018, according to the prospectus. Revenue from online marketing services increased to 1.108 billion yuan, while revenue from agency fees increased to 276.5 million yuan from 33.6 million yuan a year earlier.

In the first quarter of 2018, the average number of monthly active users of Pinduoduo reached 166 million. In the 12 months to March 31, 2018, Pinduoduo's active buyers reached 295 million, the average annual consumption of each active buyer was 67.39 billion yuan, and the GMV reached 198.7 billion yuan.

Prior to the offering, Pinduoduo CEO Huang Zheng owned 2074447700 shares, with a shareholding of 50.7 per cent, while Sequoia Capital China's founding and managing partner, Shen Nanpeng, owned 181830600 shares, or 4.4 per cent. All directors and executives hold a total of 55.5%. In terms of institutional shareholders, Tencent holds 18.5%, Banyan Capital 10.1% and Sequoia Capital China 7.4%.

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; Sequoia Capital will have 6.8% of the shares and 1.3% of the voting rights. (Kefeng)