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June 29 (Reuters) – Shares of Dingdong, backed by SoftBank Vision Fund II, opened 19% above their offer price in their debut on the New York Stock Exchange on Tuesday, giving the Chinese grocery app a valuation of $6.6 billion.

The stock opened at $28 per share, up from the initial public offering price of $23.50. At that valuation, Dingdong would be worth 29% more than the $5.1 billion it was valued at after the Japanese conglomerate invested in it last month.

Earlier, the company raised $95.7 million, selling more than 4 million American depositary shares. The pricing was at the lower end of a range announced earlier.

The IPO size was slashed to almost a fourth of Dingdong’s initial target, indicating a lukewarm response from investors despite a sustained mania for new listings in the United States.

Established in 2017 and backed also by Tiger Global Management and Sequoia Capital, Dingdong operates mainly in China’s first-tier cities including Shanghai, Beijing, Shenzhen and Hangzhou.

Morgan Stanley, BofA Securities and Credit Suisse were the lead underwriters.

Reporting by Niket Nishant in Bengaluru; Editing by Ramakrishnan M.

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