CHINESE grocery online retailer Dingdong Maicai, backed by SoftBank Vision Fund II, is aiming for a more than US$6 billion valuation in its New York trading debut as the grocery app joins Asian tech startups seeking to tap into the initial public offering (IPO) boom in the United States.

The valuation represents a jump of more than 20 percent from the US$5.1 billion the company was worth after the Japanese conglomerate invested in it last month.

Dingdong said it aims to raise up to US$357 million in its IPO as it seeks to navigate a crowded sector that has seen established players including Alibaba Group and Pinduoduo compete aggressively.

The firm, which is also backed by Tiger Global Management and Sequoia Capital, will sell 14 million American Depositary Shares (ADSs) priced between US$23.50 and US$25.50 each, according to its filing.

Set up in 2017, Dingdong operates mainly in China’s first-tier cities such as Shanghai, Beijing, Shenzhen and Hangzhou.

The COVID-19 pandemic has fueled online demand for fresh produce in China. Tencent Holdings Ltd.-backed Missfresh, another Chinese online grocery startup, also set its IPO terms earlier Tuesday, targeting a valuation of nearly US$3.8 billion.

Dingdong and Missfresh’s IPOs are among a spate of upcoming Chinese listings on U.S. stock exchanges this year.

Didi Chuxing, China’s biggest ride-hailing firm, has also filed for a long-anticipated U.S. stock market listing, setting the stage for what is expected to be the world’s biggest IPO this year.

Last year, Chinese companies raised US$12 billion from U.S. listings, more than triple the funds raised in 2019, according to Refinitiv data. This year is expected to comfortably surpass last year’s tally. (SD-Agencies)