TENCENT Holdings Ltd.-backed Missfresh Ltd.’s shares fell more than 18 percent in their U.S. stock market debut Friday, giving the Chinese online grocery company a market capitalization of about US$2.5 billion.

The company sold 21 million American depositary shares in its initial public offering (IPO) at the lower end of its target range earlier in the day, raising US$273 million.

Missfresh’s shares opened at US$10.65, compared with their IPO price of US$13 per share. Each American depositary share represents three Class B ordinary shares.

Missfresh is a mobile e-commerce platform that offers delivery services of fresh produce, including fruits, vegetables, dairy products, meat, beverages and drinks, and other daily dining and living items.

The Beijing-based firm offers more than 4,000 types of products from vegetables, seafood to snacks and cooked food, and promises deliveries as fast as 30 minutes, according to its website.

Xu Zheng, founder and chief executive of Missfresh, said the funds raised from the IPO will be injected into businesses including online supermarkets.

Xu said the COVID-19 pandemic had a positive impact on the online fresh produce industry as it drove more consumers to the online fresh produce industry from stores.

“The pandemic accelerated the development of this industry,” he said Friday.

Founded in 2014 and backed by Abu Dhabi Capital Group and Tiger Global Management, Missfresh is the latest Asian company to cash in on a record boom in U.S. capital markets.

Missfresh’s domestic rival Dingdong Maicai has also filed with U.S. regulators to list its shares with a target valuation of more than US$6 billion, while Chinese ride-hailing giant Didi Chuxing is looking to raise as much as US$4 billion in New York in what is likely to be this year’s biggest IPO. (SD-Agencies)