Chinese e-commerce company Pinduoduo announced on Tuesday its plans to offer and sell more shares in US stock market.
The company, which issued its initial public offering (IPO) on the Nasdaq Stock Market in July 2018, intends to offer and sell 37,038,000 American Depositary Shares (ADSs) in an underwritten public offering, according to its news release.
Meanwhile, several shareholders of the company will offer and sell 14,815,000 ADSs, subject to market and other conditions.
An ADS is a US dollar-denominated equity share of a foreign-based company to be issued in the United States for purchase on a US stock exchange.
The underwriters for the follow-on public offering will have a 30-day option to purchase up to an aggregate of 7,777,950 additional ADSs from the company and the selling shareholders.
The company said it expects to use the net proceeds from the proposed offering to enhance and expand its business operations, for research and development, and for general corporate purposes and working capital.
Founded in 2015, Pinduoduo is known for offering group buying deals with big discounts. Labelling itself as an innovative "new e-commerce" platform, the e-commerce company aims to provide buyers with value-for-money merchandise and interactive shopping experiences.Source: China Daily