China’s Meituan Dianping Planning For IPO

China’s Meituan Dianping has set a price range for its upcoming initial public offering (IPO) in Hong Kong, valuing itself at up to $55 billion.

According to Reuters, sources revealed that the online food delivery-to-ticketing services platform has set an indicative price range of HK$60 to HK$72 ($7.64-$9.17) per share. The company could raise as much as $4 billion, even before the allowing the sale of additional shares if there is the demand.

As one of China’s most successful Internet companies — and the world’s third-most-valuable tech startup — Meituan is considering a valuation of $46 billion to $55 billion. The company was valued at around $30 billion in a fundraising round last year.

Founded in 2010 by entrepreneur Wang Xing, Meituan has been compared to U.S.-based Groupon, offering a range of services including movie ticketing, food delivery, hotel and travel booking, and ride-hailing. It merged with Yelp-equivalent Dianping last year in a $15 billion deal.

Meituan is planning to secure a total of $1.5 billion from five investors, including Tencent Holdings and global asset manager OppenheimerFunds. Oppenheimer is scheduled to commit $500 million, while Tencent will give $400 million, according to the sources.

Other investors include U.K.-based hedge fund Lansdowne Partners ($300 million), U.S. hedge fund Darsana Master Fund LP ($200 million) and China Chengtong Holdings Group ($100 million).

Both Tencent and Meituan declined to comment about the reports.

In July, it was reported that both Meituan and its main rival, Alibaba-backed Ele.me, have incurred massive losses as they offer steep discounts to attract customers. But while Meituan noted a net loss of 19 billion yuan ($2.8 billion) last year, it also showed that it more than doubled revenue to 33.9 billion yuan when it filed for its IPO.

Its filing also revealed that Meituan plans to use the money made from the IPO to upgrade its technology, create new services and products, and pursue key acquisitions.