Pinduoduo seeks $1.87b IPO on Nasdaq

E-commerce site Pinduoduo confirmed on Tuesday its share-floating plan on Nasdaq, through which it seeks to raise up to $1.87 billion.

In its updated prospectus filed with the United States Securities and Exchange Commission, the social-commerce company said two of its main existing shareholders, Tencent Holdings Ltd and Sequoia Capital, have each indicated an interest in buying up to $250 million worth of shares in the IPO.

It also changed the company name from Walnut Street Group Holding Ltd to Pinduoduo Inc, identical to that of its iconic mobile app.

Pinduoduo will adopt a weighted voting rights structure. Its founder and chairman, Colin Huang, will hold 46.8 percent of the shares and 89.8 percent of voting rights, while the second-largest shareholder, Tencent, will have 17 percent of the shares and 3.3 percent of voting rights.

Boasting 344 million active users by the end of June, Pinduoduo allows customers to form a voluntary purchasing alliance through the use of social media - mostly Tencent’s WeChat - to enjoy a discount.

The company is the latest in a series of Chinese tech companies flocking to list offshore. Meituan Dianping, an online food delivery-to-ticketing service provider, is also looking to launch an IPO in Hong Kong soon.