Tencent and the local services company's deeper mutual commitment was announced on July 13, 2021.
After the completion of Tencent's subscription on July 13, 2021, Meituan allotted and issued 11.35 million 'Tencent subscription shares,' which boosted Tencent's stake in the company to 17.2%.
The estimated net proceeds from Tencent's subscription are expected to reach about USD 400 million, at a subscription price of HKD 273.78 per share. Meituan, per its disclosure, intends to use the estimated net proceeds for technological innovation, including research and development in cutting-edge technologies, such as unmanned vehicles.
Founded in 2011, Meituan was among the first group buying platforms in China. Its business now consists of over 200 service categories, focusing on food delivery, in-store, hotel & travel, among other areas. It went public on the Hong Kong Stock Exchange at HKD 69 apiece in September 2018. Since then, it has grown into one of the largest companies in China's technology sector, attracting close attention from the country's regulators.
Read more about China's latest wave of anti-trust regulations in our research report, China Big Tech Crackdown Winners.