Chinese grocery app Dingdong, backed by SoftBank Vision Fund II, on Monday slashed the size of its initial public offering in the United States to about a fourth of what it had aimed for earlier.

It is now looking to raise up to $94.4 million, according to a filing, compared with its earlier plan for up to $357 million.

The company said it would be aiming to sell 3.7 million American Depositary Shares (ADSs) priced between $23.50 and $25.50 each. It had earlier said it would be looking to sell 14 million ADSs.

The downsizing comes after rival grocery app Missfresh Ltd, backed by Tencent Holdings Ltd, plunged in its market debut last week.

After opening 18% below the offer price of $10 per ADS on Friday, shares of Missfresh have slumped further to $8.75 per ADS in late afternoon trading on Monday, almost 33% below their IPO price.

Morgan Stanley, BofA Securities and Credit Suisse are the lead underwriters for the Dingdong IPO.

  - Reuters