By Fiona Lau and Julie Zhu

HONG KONG (Reuters/IFR) - Chinese online food delivery-to-ticketing services firm Meituan Dianping raised $4.2 billion in the world's biggest internet-focused IPO in four years as it priced the float near the top end of a marketed range, people close to the deal said.

Meituan, backed by Chinese social media and gaming firm Tencent Holdings, sold about 480 million primary shares at HK$69 ($8.79) each in the Hong Kong IPO, valuing the company at around $52.8 billion, the sources said on Thursday.

The proceeds will help Meituan fortify itself against stiff competition from its main competitor, food-delivery platform Ele.me which is backed by China's biggest e-commerce company Alibaba Group Holding. Both parties, in a bruising battle for market share, are offering heavy discounts to attract new customers.

Loss-making Meituan last month set a price range of HK$60 to HK$72 per share for the IPO. It could raise as much as $4.85 billion in total if a 15 percent "greenshoe", or over-allotment option, is fully exercised after the shares begin trading.

The IPO received strong support from institutional investors despite a weak overall Hong Kong stock market. People close to the deal told Reuters the institutional books were covered multiple times while the retail tranche was covered about 1.5 times.

"Since the stock priced at the upper end of the range, it suggests institutions are holding a more positive view on the company and on this type of new economy IPOs," said Steven Leung, sales director at brokerage UOB Kay Hian. Leung forecast a "stable" debut for Meituan when it starts trading on Sept. 20.

Beijing-based Meituan declined to comment on the pricing. The people declined to be identified as details of the pricing have not been published yet.

Founded in 2010 by Wang Xing, Meituan which has been likened to U.S. discounting platform Groupon Inc, completed a $15 billion merger in 2015 with its then main rival Dianping, akin to U.S. online review firm Yelp Inc.

It offers a broad range of services including movie ticketing, food delivery, hotel and travel booking as well as ride-hailing.

The HK$69 IPO price represents a multiple of 27 times its 2020 profit forecast by its underwriting syndicate, according to sources. The IPO size represents 8 percent of its enlarged share capital and the $53 billion valuation takes into account shares to be issued under a pre-IPO employee stock ownership plan, the people said.

PACKED IPO CALENDAR

Meituan had lined up $1.5 billion from five cornerstone investors for the IPO.