(Yicai Global) July 27 -- Tencent-backed Pinduoduo [NASDAQ:PDD] raised USD1.6 billion on its Nasdaq debut with shares closing up 40.5 percent at USD26.7, valuing the bulk-buy platform at USD29.6 billion.
The initial public offering, issued yesterday evening Beijing time, was America's fourth largest this year and propels founder Colin Huang into the upper echelons of China's richest people. Huang's 46 percent stake in the country's third-biggest e-commerce firm gives him a USD13.8 billion fortune.
With a user base of 344 million active buyers and over one million merchants, Huan aims to turn the platform into a combination of Costco and Disney, he wrote in a letter to shareholders. The Shanghai-based firm aims to provide high cost performance, while also integrating entertainment aspects.
Mengxun Information Technology, the company behind the platform aims to bring both ends of the supply chain closer together and allow a larger scale of customization for customers, he added.
Pinduoduo issued 85.6 million American Depositary Shares at a price of USD19 each, while the opening quotation was USD26.5. Pinduoduo chose to ring listing bells in both Shanghai and New York simultaneously, for the first time in the Nasdaq's history of the NASDAQ, while Huang himself did not fly to the US, opting to stay in Shanghai and connect to the event over a livestream.
Editor: William Clegg