{"id":4597,"date":"2018-07-20T09:59:53","date_gmt":"2018-07-20T13:59:53","guid":{"rendered":"http:\/\/www.ipoboutique.com\/blog\/?p=4597"},"modified":"2018-07-20T09:59:53","modified_gmt":"2018-07-20T13:59:53","slug":"pinduoduo-inc-ipo-preview-pdd","status":"publish","type":"post","link":"https:\/\/www.ipoboutique.com\/blog\/pinduoduo-inc-ipo-preview-pdd\/","title":{"rendered":"Pinduoduo Inc #IPO Preview $PDD"},"content":{"rendered":"

\"PDD\"<\/a><\/p>\n

Company: Pinduoduo Inc.<\/strong>
\nSymbol: PDD
\nDescription: They are an innovative and fast growing new e-commerce platform that provides buyers with value-for-money merchandise and fun and interactive shopping experiences.
\nTrade Date: 7\/26
\nShares: 85.6 million ADSs
\nPrice Range: $16.00-$19.00
\nUnderwriter(s): Credit Suisse, Goldman Sachs (Asia), CICC, China Renaissance<\/p>\n

Link to Prospectus<\/a><\/strong><\/p>\n

Link to Retail Roadshow<\/a><\/strong><\/p>\n

Business<\/strong>:\u00a0Their\u00a0Pinduoduo\u00a0mobile platform offers a comprehensive selection of attractively priced merchandise, featuring a dynamic social shopping experience that leverages social networks as an effective and efficient tool for buyer acquisition and engagement. As a result of their innovative business model, they have been able to quickly expand their buyer base and establish their brand recognition and market position. They are one of the leading Chinese e-commerce players in terms of GMV and the number of total orders. Their GMV in 2017 and the twelve-month period ended June\u00a030, 2018 was RMB141.2\u00a0billion and RMB262.1\u00a0billion (US$41.8 billion), respectively. In 2017 and the first quarter of 2018, the number of total orders placed on their\u00a0Pinduoduo\u00a0mobile platform reached 4.3\u00a0billion and 1.7\u00a0billion, respectively.<\/p>\n

Financials:\u00a0<\/strong>They have experienced substantial growth since their inception in 2015. In addition to their marketplace services, they also operated an online direct sales business from which they derived a substantial majority of their revenues from 2015 to 2016. This business no longer generates revenues after they fully transitioned into their current marketplace model in the first quarter of 2017. They currently generate revenues primarily from online marketplace services. Their revenues grew from RMB504.9\u00a0million in 2016 to RMB1,744.1\u00a0million (US$278.0\u00a0million) in 2017, and grew from RMB37.0\u00a0million in the three months ended March\u00a031, 2017 to RMB1,384.6\u00a0million (US$220.7\u00a0million) in the same period in 2018. They incurred net loss of RMB292.0\u00a0million and RMB525.1\u00a0million (US$83.7\u00a0million) in 2016 and 2017, respectively. They incurred net loss of RMB201.0\u00a0million (US$32.0\u00a0million) in the three months ended March\u00a031, 2018, compared to net loss of RMB207.7\u00a0million in the three months ended March\u00a031, 2017.<\/p>\n

\"PDD.financials\"<\/a><\/p>\n

Insider Buying:<\/strong> Tencent Holdings Limited and Sequoia Capital, two of their principal shareholders, have indicated an interest in purchasing up to US$250\u00a0million and US$250\u00a0million, respectively, of the ADSs representing Class\u00a0A ordinary shares in this offering at the initial public offering price and on the same terms as the other ADSs being offered.<\/p>\n

Book-Building Status<\/strong>: The way the book comes together during the week of the roadshow is the most critical indicator to first-day and first-week performance. IPO Boutique uses its 45 years of experience and sources all over the street to gather daily subscription levels, specific price guidance and what type of investors are currently in the book or are anchoring orders in the book. In addition, recent underwriter performance on sector specific deals is a strong factor that IPO Boutique takes into account when determining if our clients should indicate for any offering.<\/p>\n

IPO Boutique subscription clients receive daily updates on this critical information.<\/span><\/a><\/p>\n

Conclusion<\/strong>: IPO Boutique provides ratings, daily commentary and a forecast for how this IPO will open vs. its offering price. We have kept a\u00a0track record<\/span><\/a>\u00a0with our performance for last 12 years at our website. Additionally, here’s a 2017 recap of our performance<\/a>\u00a0to showcase the value of IPO Boutique’s service.<\/p>\n

Indicate with confidence,\u00a0<\/b>SUBSCRIBE<\/b><\/a>\u00a0today.<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"

Company: Pinduoduo Inc. Symbol: PDD Description: They are an innovative and fast growing new e-commerce platform that provides buyers with value-for-money merchandise and fun and interactive shopping experiences. Trade Date: 7\/26 Shares: 85.6 million ADSs Price Range: $16.00-$19.00 Underwriter(s): Credit Suisse, Goldman Sachs (Asia), CICC, China Renaissance Link to Prospectus Link to Retail Roadshow Business:\u00a0Their\u00a0Pinduoduo\u00a0mobile[…]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"zakra_general_container_width":0,"zakra_general_content_width":0,"zakra_general_sidebar_width":0,"zakra_sticky_header":"customizer","zakra_header_main_area":true,"zakra_site_logo_width":0,"zakra_header_top_enabled":"customizer","zakra_header_top_style":"customizer","zakra_primary_menu_item_style":"customizer","zakra_page_header_text_color":"","zakra_page_header_layout":"customizer","zakra_page_title_bg":"","zakra_footer_widgets_bg_image":0,"zakra_page_title_bg_repeat":"customizer","zakra_page_title_bg_position":"customizer","zakra_page_title_bg_size":"customizer","zakra_page_title_bg_attachment":"customizer","zakra_breadcrumbs_enabled":"customizer","zakra_breadcrumbs_text_color":"","zakra_breadcrumbs_separator_color":"","zakra_breadcrumbs_link_color":"","zakra_breadcrumbs_link_hover_color":"","zakra_page_title_bg_image":0,"zakra_footer_widgets_enabled":"customizer","zakra_footer_column_layout_1_style":"customizer","zakra_footer_widgets_bg":"","zakra_footer_widgets_bg_repeat":"customizer","zakra_footer_widgets_bg_position":"customizer","zakra_footer_widgets_bg_size":"customizer","zakra_footer_widgets_bg_attachment":"customizer","zakra_footer_bar_enabled":"customizer","zakra_footer_bar_style":"customizer","footnotes":""},"categories":[24],"tags":[],"class_list":["post-4597","post","type-post","status-publish","format-standard","hentry","category-ipo"],"_links":{"self":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts\/4597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/comments?post=4597"}],"version-history":[{"count":1,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts\/4597\/revisions"}],"predecessor-version":[{"id":4600,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts\/4597\/revisions\/4600"}],"wp:attachment":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/media?parent=4597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/categories?post=4597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/tags?post=4597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}