Why Pinduoduo is unlikely to detach itself from Tencent

In the run-up to its $1.6 billion US IPO, high-flying Chinese online shopping app pushes the message it is not a Tencent affiliate. It's not quite as simple as that ...

Many startups dream of luring a high-profile investor like Tencent. Apart from raising the startup’s public profile, a prominent investor helps draw attention from other would-be investors and is therefore hugely beneficial from a funding point of view.

But there is always an exception.

Pinduoduo, a Chinese e-commerce site that is yet to celebrate its third anniversary, launched a US initial public offering on Tuesday under the name of Walnut Street Group, and aims to raise up to $1.63 billion.

Preliminary terms show the company plans to issue 85.6 million American depositary shares at between $16 and $19 each in a deal sponsored...

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