Chinese grocery apps risk spoiling early

Missfresh

28/06/2021 03:59

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Yawen Chen
    HONG KONG, June 28 (Reuters Breakingviews) - Missfresh
shares fell 26% on their New York debut, a worrying sign for
rival Dingdong Maicai’s upcoming listing. Price wars and
logistics costs have crushed margins and e-commerce giants are
muscling into the sector. Joining forces may give both a better
chance of survival.  
    Full view will be published shortly.
    Follow @ywchen1 https://twitter.com/ywchen1 on Twitter
    
    CONTEXT NEWS
    - Shares of Chinese online grocery company Missfresh closed
down 26% to $9.66 on their first day trading on June 25,
compared to their initial public offering price of $13. The
company sold 21 million American depositary shares at the lower
end of its target range, raising $273 million.
    - Rival Dingdong Maicai is seeking to raise as much as $410
million, including an over-allotment option, on the New York
Stock Exchange, marketing them at a range of $23.5 to $25.5
each. 
    - Missfresh and Dingdong Maicai had lowered their initial
funding targets by 40%, the South China Morning Post reported on
June 24 citing sources.    
    - For previous columns by the author, Reuters customers can
click on  CHEN/ 
 

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Missfresh updated prospectus    https://www.sec.gov/Archives/edgar/data/0001851682/000119312521195850/d123092df1a.htm
SCMP story    https://www.scmp.com/business/banking-finance/article/3138439/chinese-grocery-platforms-missfresh-dingdong-scale-down-us
Tencent-backed Missfresh valued at $2.5 bln after shares slump
in debut     urn:newsml:reuters.com:*:nL3N2O7376
BREAKINGVIEWS-Meituan delivers strong dish with weak sides   
 urn:newsml:reuters.com:*:nL2N2NI00P
BREAKINGVIEWS-Beijing attacks from rear in online grocery war   
 urn:newsml:reuters.com:*:nL1N2J3064
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Robyn Mak and Katrina Hamlin)
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