Pinduoduo stock rises, to trade well above where its upsized shares offering priced

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Shares of Pinduoduo Inc. rose 0.2% in morning trading Wednesday, to trade well above where the China-based mobile commerce company’s upsized stock offering priced. The company said its offering of 28.7 million American depositary shares (ADS), up from previous expectations of a 22.0 million-share offering, priced at $125 per ADS, to raise $3.59 billion. The pricing was 5.8% below current prices. Separately, the company also offered $1.75 billion in convertible senior notes due 2025. The company said it expects to use the proceeds from the offerings to strengthen its balance sheet, make strategic infrastructure investments and for future acquisitions. “We are seeing large-scale changes in consumer habits as a result of COVID-19, which are accelerating digital transformation across different sectors,” said Chief Executive Chen Lei. Pinduoduo’s stock has soared 251% year to date, while the iShares MSCI China ETF has climbed 24.5% and the S&P 500 has gained 11.7%.
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