Meituan [HKG:3690] is among a handful of Asian companies working on a convertible bond (CB) sale, following a recent renaissance in equity-linked deal flows from China.

The Chinese shopping-platform operator is working with Bank of America and Goldman Sachs on its second such offer, according to two market participants.

The CB’s size, timeline, terms and structure are still unclear as the deal is pending quota approval from China’s National Development and Reform Commission, one said. Meituan will announce its first-quarter results on 6 June, according to the corporate website. Issuers typically launch deals after their earnings.

Meituan raised USD 3bn from a CB offer alongside a concurrent USD 7bn share placement in April 2021, in a deal arranged by the same duo.

Its outstanding zero-coupon 2027 note will be puttable in less than a year. It was trading at 94.35-94.45 this morning (June 4), while the 2028 tranche puttable in April 2026 was at 88.95-89.05.

Recent offers by JD.com [NASDAQ:JD, HKG:9618] and Alibaba Group Holding Ltd [NYSE:BABA, HKG:9988] – which together raised about USD 7bn in the same week in May – were tied to their respective share buyback schemes.

Meituan announced on 29 November 2023 a resolution to buy back up to USD 1bn of its shares in the open market. It started buying back shares on 10 January, a third market participant said.

The stock has gained 25.5% since last November end, beating the Hang Seng Index’s 8.5% rise over the same period.

Bank of America declined to comment. Goldman Sachs and Meituan did not immediately return requests for comments.