Shanghai-based online grocery company Dada Nexus (NASDAQ: DADA) raised USD 320 million in its upsized Nasdaq IPO on Friday, selling 20 million American Depository Shares (ADS) priced at USD 16.
The company had previously expected to raise just over USD 280 million by selling 16.5 million shares priced between USD 15 and USD 17.
Dada’s stock opened at USD 18.30 on Friday trading, valuing the company at over $4 billion, before its share price slumped to USD 15.50 as of Friday afternoon.
Dada Nexus, which counts Walmart and JD.com (NASDAQ:JD) among its influential backers, experienced robust growth during the pandemic outbreak in China as revenue grew 108.9% year-on-year during the first three months of the year.
Dada Nexus operates JD Daojia, a grocery delivery service that ensures home deliveries within one hour, from a variety of retail outlets across over 100 cities across China. JD Daojia has both a standalone app and a channel inside JD.com’s main app.