Davis Polk advised Tencent in connection with its participation in a private placement by Pinduoduo Inc. to certain long-term investors of a total of $1.1 billion of newly issued Class A ordinary shares, which represent approximately 2.8% of Pinduoduo’s total outstanding shares. Tencent purchased approximately $50 million of Class A ordinary shares in cash in the private placement.
Pinduoduo is an innovative and fast growing technology platform and one of the leading e-commerce players in China. The Pinduoduo mobile platform offers a comprehensive selection of attractively priced merchandise, featuring a dynamic social shopping experience that leverages social networks. Pinduoduo’s American depositary shares, each of which represents four Class A ordinary shares, are listed on the Nasdaq Global Select Market. Tencent has been one of the principal shareholders in Pinduoduo since February 2017. After the investment, Tencent holds approximately 16.5% of Pinduoduo’s total outstanding shares.
The Davis Polk corporate team included partner Miranda So and registered foreign lawyers Xi Shi, Zhiyao Li and Mendtuvshin (Mendee) Enkhtaivan. All members of the Davis Polk team are based in the Hong Kong office.