On 26 July 2018 (EST), Pinduoduo Inc. (NASDAQ: PDD) successfully launched its IPO of 85.6 million American Depositary Shares (ADSs) on the NASDAQ at $19 per ADS. The underwriters have an overallotment option to purchase up to 12.84 million additional ADSs. On its first day of trading, Pinduoduo opened at $26.5, surging nearly 40% on its offering price and reached a market capitalization of approximately $34 billion based on its closing price of $26.7. Sequoia Capital and Tencent, two of its existing shareholders each invested an additional $150 million in this IPO. If the overallotment option is fully exercised, the company would raise up to $1.87 billion in this public offering.
Established in 2015, Pinduoduo is a fast-growing mobile e-commerce platform in China. Through "Pin" or the group purchase format, Pinduoduo has rapidly grown into a leading national e-commerce platform in less than 3 years after its incorporation, widely perceived as a new-generation "super unicorn" in China. For the 12 months ending 30 June 2018, Pinduoduo reported a Gross Merchandise Volume (GMV) of RMB 262.1 billion and 343.6 million active users in total.
As PRC counsel for Pinduoduo, King & Wood Mallesons (KWM) assisted the client throughout its pre-IPO financing of approximate $1.37 billion and on every aspect of this listing. With in-depth understanding and know-how of the industry legislations and policies, KWM team provided professional advice and solutions on various front-line PRC legal matters under its "new e-commerce" mode. The project was led by partners Nie Weidong and Wang Ningyuan.
