On-demand Delivery Firm Dada Group to List on Nasdaq Early this Month
On June 1, it was reported that Chinese on-demand delivery and retail platform Dada Group launched its IPO process on Nasdaq hoping to raise $300 million. Tencent News was informed that Dada will determine the official listing date within this week and list in the United States early this month. Dada declined to comment on the news.
Dada Group submitted its F-1 prospectus to the US Securities and Exchange Commission (SEC) on May 13, planning to list on Nasdaq under the trading symbol “DADA.” The company did not disclose the price range for its shares, circulation or other relevant information. Earlier news said that Dada Group’s fundraising scale would reach $500 million.
Investment banks Goldman Sachs, Bank of America Securities and Jefferies are co-lead underwriters for the company’s IPO.
According to the prospectus data, Dada Group’s net income has grown rapidly in the past three years. Net revenue in 2017 was 1.2 billion yuan, increasing by 57.8% in 2018 to 1.9 billion yuan, and further increasing by another 61.3% in 2019 to 3.1 billion yuan. The latest financial data shows that net revenue for the Q1 ending March 31, 2020 increased by 108.9% year-on-year to 1.0996 billion yuan. The company’s net losses have declined from 1.9 billion yuan in 2018 to 1.7 billion in 2019. As March 31, 2020, Dada Group held cash and cash equivalents of 971.3 million yuan and short-term investments of 958.3 million yuan.
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