Benzinga | Jun 29, 2021 09:31AM EDT

SoftBank-Backed Dingdong Downsizes U.S. IPO Target Following Missfresh Debacle: Reuters

* SoftBank Group Corp (OTC:SFTBY) (OTC:SFTBF) Vision Fund II backed Chinese grocery app, Dingdong has downsized its U.S. initial public offering size to almost 25% of its previous plan, Reuters reports.

* It plans to sell 3.7 million American Depositary Shares (ADSs) priced between $23.50 - $25.50 each to raise $94.4 million. It had earlier planned to sell 14 million ADSs to raise $357 million.

* Morgan Stanley, BofA Securities, and Credit Suisse are the lead underwriters for the Dingdong IPO.

* The downsizing followed Tencent Holdings Ltd - (OTC:TCEHY) backed rival grocery app Missfresh Ltd (NASDAQ:MF) IPO debacle last week.

* After opening 18% below the offer price of $10 per ADS on Friday, shares of Missfresh have dropped almost 33% below their IPO price in late afternoon trading on Monday,

* Price action: MF shares traded higher by 0.79% at $8.91 on the last check Tuesday.