Inventory refresh

30 November 2020 By Sharon Lam Follow @sharonlamhk

The e-commerce company unveiled plans to raise as much as $6.1 bln to expand in fresh food. Competition is fierce and building out logistics will be costly, but its model of matching farmers to shoppers gives it an edge. And boss Chen Lei has successful experience as an underdog.

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Chinese e-commerce company Pinduoduo said on Nov. 18 it would raise $6.1 billion in convertible notes and equity, including the overallotment allocated to its underwriters. The company was targeting a Nov. 20 completion, but had not confirmed the final details as of Nov. 30.

It offered a $1.75 billion convertible bond due in 2025 and priced 28.7 million American depositary shares at $125 each. The company will sell an additional $250 million in notes as well as 4.3 million ADS if the so-called greenshoe option is fully exercised.

Pinduoduo said it plans to use the proceeds to strengthen its balance sheet and make strategic investments in infrastructure, expand its business operations, make future acquisitions and enter partnerships.

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