Business
Meituan Co-Founder Cashes Out $44.3M Amidst Stock Rally: An Inside Look at Mu Rongjun’s Strategic Sale
Co-founder of Meituan liquidates $44.3 million as Chinese stocks surge
Mu Rongjun, a top executive at the instant delivery company, offloaded his shares following a remarkable 240 per cent surge in price since a low in February.
Mu Rongjun, who occupies a top-level position as an executive director and senior vice-president at a Beijing-based delivery company, disposed of his shares for a price of HK$171.8 each, as revealed in a declaration submitted to the Hong Kong stock exchange on Thursday. His ownership in Meituan has now dropped to 1.02 percent from the previous 1.06 percent. According to Forbes, Mu's net worth is around US$3.4 billion.
On Friday morning, Meituan's stock experienced a 3.3% increase, reaching HK$211.8 in Hong Kong. This is a significant comeback, with the shares surging 240% since reaching their lowest point in early February.
Three months following Meituan's declaration of their intention to repurchase stocks worth as much as $2 billion, Mu reduced his shares in the company. The firm indicated that there were no certainties regarding the timeline, amount, or cost of the buy-back.
Meituan saw a 21% increase in its revenue for the second quarter, amounting to 82 billion yuan (approximately $11.6 billion US dollars), primarily due to the steady expansion of its principal local commerce activities, namely food and grocery delivery. The company's profit also soared by 142% to 11 billion yuan for the same period.
The firm declared on Thursday that they had issued $2.5 billion worth of senior notes to professional investors. This involves $1.2 billion in notes that feature a 4.5% interest rate and are due in 2028, alongside $1.3 billion in notes that carry a 4.625% interest rate and are due in 2029.
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