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Why Meituan Was China’s Most Anticipated IPO in 2018
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Why Meituan Was China’s Most Anticipated IPO in 2018


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Editorial Rating

8

Qualities

  • Overview
  • Background
  • Concrete Examples

Recommendation

On September 20, 2018, Chinese online-to-offline (O2O) life services company Meituan-Dianping debuted on the Hong Kong Stock Exchange with an initial public offering price of HK$69 [US$8.80]. Meituan is now valued at US$51 billion, making it the fourth-most valuable Chinese Internet company behind Alibaba, Tencent, and Baidu. Although many Chinese executives took their companies public in 2018, Meituan’s IPO was the most anticipated one. Liang Ning, an expert product manager who lectures at Jack Ma’s entrepreneur school Hupan University and has her own podcast on Dedao app, gives her take on what makes Meituan unique. 

Take-Aways

  • Meituan began as a group-buying company similar to Groupon but quickly expanded its portfolio.  
  • Food delivery has become the most important part of Meituan’s business: High-frequency usage of this function drives traffic, which the company can direct toward its other functions.  
  • Although Meituan came late to almost all its markets, it now leads almost all of them. 

About the Author

Liang Ning lectures at Hupan University, a start-up entrepreneur school founded by Alibaba’s Jack Ma and a group of Chinese business leaders. Liang also has an online podcast course on the paid-knowledge app Dedao.


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