July 26, 2018 / 1:29 AM / 3 months ago

Pinduoduo raises $1.6 bln in year's second-biggest Chinese IPO in U.S. - sources

HONG KONG, July 26 (Reuters) - Chinese online group discounter Pinduoduo Inc priced its U.S. initial public offering (IPO) at $19 per American depositary share (ADS), raising $1.63 billion in the second-biggest U.S. float by a Chinese firm this year, according to two people familiar with the situation.

The pricing values money-losing Pinduoduo - which counts Chinese internet giant Tencent Holdings Ltd as a main backer - at $23.8 billion including all outstanding share options, compared with a valuation of $15 billion following a funding round in April.

The fast-growing company allows consumers to group together to get better discounts from merchants selling goods as varied as clothes, kitchenware and gadgets. It offered about 85.6 million ADS or about 6.8 percent of its enlarged share capital, at $16 to $19 each. (Reporting by Julie Zhu and Fiona Lau of IFR in Hong Kong; Editing by Christopher Cushing and Stephen Coates)

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