Dingdong Maicai Price Surges as Ticker Symbol Might Have Been Mistaken for DIDI

Dingdong Maicai, a Chinese fresh grocery e-commerce platform, triggered the circuit breaker twice on the second day after being listed. As this article is being written, its price is reportedly at USD 38.4 per share. Its total market value has dropped to USD 9 billion.

Dingdong’s share prices soared just two days after its listing, creating confusion among many. As its share price increase rose to 43%, the trading was halted temperorarily. Yet, when trading resumed, its price continued to surge, with the circuit breaker kicking in for the second time. At present, Dingdong Maicai’s surge has winded back down to around 63%, with the stock priced at US $38.4 per share, and its total market value has fallen to US $9 billion. In contrast, MissFresh rose by 12%, priced at US $10 per share, holding a market value of US $2.3 billion.

Zhang Ying, founding managing partner of Matrix Partners China, said on WeChat that some investors in the United States might have mistaken Dingdong Maicai’s ticker symbol (DDL) for Didi (DIDI).

On June 30th, Beijing time, Didi was officially listed on NYSE with the ticker symbol “DIDI”. In this IPO, the firm’s issue price was set at USD $14. Didi issued 317 million American Depositary Shares, 10% more than its initial plan of 288 million shares. At the issue price of US $14, Didi raised at least USD $4.4 billion this time, and its IPO’s valuation is more than USD $67 billion.

Dingdong Maicai was officially listed on the New York Stock Exchange on the evening of June 29, with a price of USD $23.5 per share. According to its prospectus, Dingdong Maicai made an initial public offering of 3.7 million American Depositary Shares (ADS), raising about USD $86.95 million, only a quarter of its original plan.

Dingdong Maicai submitted its prospectus on June 9. According to the document, Dingdong Maicai’s revenue in 2020 was 11.336 billion yuan, a year-on-year increase of 192%. Its revenue in the first quarter of 2021 was 3.757 billion yuan, a year-on-year growth of 45%.

SEE ALSO: Chinese Online Grocer Dingdong Maicai Raises $330 Million in Latest Funding Round

From 2018 to 2020, Dingdong saw its gross merchandise value (GMV) Compound annual growth rate achieved 319%, and its GMV reached 13 billion yuan in 2020, accounting for 10% of the market share of China’s instant retail e-commerce.