(Bloomberg) -- Meituan is considering raising funds via a bond offering this year, people familiar with the matter said, as the Chinese food delivery and shopping platform seeks to repay some existing debt and fund its expansion.

Meituan, founded in 2010 and led by billionaire Wang Xing, is working with investment banks to lay the groundwork for an offering, the people said, asking not to be identified because the matter is private. The size of the bond could be more than $1 billion, according to the people.

While other tech giants including Alibaba Group Holding Ltd. and JD.com Inc. have recently opted for convertible bond sales, Meituan is leaning towards a regular bond offering instead, the people said.

Proceeds will likely be used to replenish working capital, repay some bonds maturing from next year and fund growth, the people said. Considerations are preliminary and terms including the size and tenor of the bond are under discussion and subject to change, they said. 

A representative for Meituan didn’t respond to a request for comment. 

Meituan has a 2.125% $750 million bond due in October 2025, data compiled by Bloomberg show.

While it will take a cautious approach, Meituan is looking to expand beyond Greater China and into the Middle East and possibly other markets such as Europe and Southeast Asia, Wang said earlier this month after the company reported a 60% jump in quarterly net income from a year earlier. 

In China, Meituan is facing new rivals including Kuaishou Technology and ByteDance Ltd. in the meal-delivery business. Meituan listed on the Hong Kong Stock Exchange in 2018. Its shares have climbed about 43% this year. 

--With assistance from Yuling Yang, Ameya Karve and Sarah Zheng.

©2024 Bloomberg L.P.