$PDD Holdings (PDD.US)$It was announced today that a global institutional investor will purchase nearly US$500 million worth of newly issued Class A ordinary shares of PDD Holdings through a private placement, accounting for approximately 0.3% of the total number of shares after the new share issuance. The transaction price was set based on the volume-weighted average price over the last five trading days. Additionally, the investor has agreed to a six-month lock-up period for the newly issued shares. The transaction is expected to be completed around December 24, 2020. Following the announcement, PDD Holdings' share price fell nearly 3% in pre-market trading.
In accordance with Section 4(a)(2) of the Securities Act regarding transactions not involving a public offering, as stipulated in Regulation S of the Securities Act, this share issuance is exempt from the registration requirements of the Securities Act of 1933, as amended.
PDD Holdings currently has 731 million annual active buyers.