Pinduoduo, a Chinese shopping platform, late on Wednesday raised $1.6bn, according to people familiar with the deal, making it one of the largest US-listed initial public offerings this year.
The company sold 85.6m American depositary shares, or ADS, at $19 per share, pricing at the top of the range of $16-$19 and gave the company a market value of $23.8bn.
Founded by former Google engineer Colin Huang three years ago, the start-up had total revenue of Rmb1.4bn ($206.8m) in the three months ended March 31 from Rmb37m in the same period a year ago. The net loss of Rmb201m in first quarter of 2018 narrowed slightly versus Rmb208m in the year ago period.
The company enables consumers to collectively shop for deals online. Tencent, the Chinese internet company, is among its backers.
At its size, the deal ranks as the second-largest IPO in the US this year, according to data from Dealogic, and the second Chinese company to rank among 2018’s big deals. In March, iQIYI raised $2.4bn.
Shares of Pinduoduo will trade on Nasdaq under the stock symbol PDD.