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Can I buy Dingdong Maicai (DDL) stock in Canada?
If you live in Canada, you can't buy Dingdong Maicai American Depositary Shares (ADSs). But you can invest in similar companies.
Chinese grocery app, Dingdong Maicai, has gone public on the NYSE. Learn more about the Dingdong Maicai IPO, and find out if investors in Canada can buy in.
Note: all dollar amounts on this page are in US dollars unless otherwise stated.
What we know about the Dingdong Maicai IPO
On Tuesday June 29, 2021, Dingdong (Cayman) Limited, which own the Dingdong Maicai a grocery app in China, went public on the NYSE under the ticker symbol “DDL.”
The company sold 4.1 million American Depositary Shares (ADSs), down from its previous plan of selling 14 million ADSs. The IPO price per share was set at $23.50, however, shares began trading higher at $28. The share price remained above the target the following day, reaching a high of $46 before closing at $38.30. Altogether, Dingdong Maicai raised roughly $100 million from the IPO. The company has a market valuation of around $10 billion.
Dingdong Maicai originally filed a prospectus with the the US Securities and Exchange Commission on June 8, 2021. According to the document, Morgan Stanley & Co. LLC; BofA Securities, Inc. and Credit Suisse Securities (USA) LLC were the lead underwriters of the IPO.
Can I buy Dingdong Maicai stock in Canada?
Unfortunately, no. Dingdong Maicai is only selling American Depositary Shares, which are equity shares of a non-US company held by a US depository bank. Generally, only US residents can have accounts with US depository banks. So, Canadians can’t buy Dingdong Maicai stocks directly.
Depository Banks are financial institutions that hold people’s assets (money, securities etc.) for safekeeping. Where stock trading is concerned, depository banks make it relatively safe and easy for US residents to buy stocks in foreign companies that trade on US exchanges like the NYSE or the Nasdaq. This is because a depository bank acts as a custodian of stocks until they’re sold, after which it transfers the stocks between investors’ accounts.
Invest in similar companies
You can buy stocks in the following companies that own grocery apps and delivery services, but you’ll need a trading platform that provides access to Canadian and international stock exchanges.
|Company||Market Capitalization||Stock info|
|Loblaw Companies Limited||$26.038 billion||TSX: L|
|Target Corporation (owns the Shipt app)||$121.43 billion||NYSE: TGT|
|Walmart Inc.||$392.133 billion||NYSE: WMT|
|HelloFresh SE||$17.701 billion||OTC Markets: HLFFF|
|Koninklijke Ahold Delhaize N.V. (owns the Peapod app)||$30.57 billion||OTC Markets: ADRNY|
|Amazon.com, Inc. (runs Amazon Prime Now, which delivers food and other items in the US, UK, India and other markets.)||$1.854 trillion||NasdaqGS: AMZN|
How to buy stocks in a company
You’ll need a brokerage account to buy and sell shares. Here’s how it works:
- Compare share trading platforms. If you’re a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
- Search for the company you want to invest in. Find the stock by name or ticker symbol (for example, WMT). Research its history to confirm it’s a solid investment against your financial goals.
- Purchase now or later. Buy immediately with a market order or use a limit order to delay your purchase until the stock reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimize risk through the market’s ups and downs. You may be able to buy fractional shares of companies, depending on your broker.
- Check in on your investment. Congratulations, you own part of a company! Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
Tax implications of buying US stocks in Canada
Agreements between Canada and the US require Canadians holding US stock investments to pay the US Internal Revenue Service (IRS) a 15% withholding tax on any dividends earned on their US stocks. Interest earned from bonds or other interest-yielding US investments are similarly taxed at a rate of 10%.
An exception is made for stock investments held in trust exclusively designed to provide retirement income. Such trusts include RRIFs, LIRAs, LIFs, LRIFs and Prescribed RRIFs. RRSPs are also exempt from US withholding tax if you own US investments in the form of US stocks, bonds or ETFs.
All income from investments, including foreign investments, must be declared as part of your income on your Canadian tax return. Unless your US earnings are exempt from withholding tax, this means you’ll be double taxed on those earnings — first by the IRS, then by the CRA. However, the CRA may allow you to claim foreign tax credits for any taxes you’ve already paid to the IRS.
Speak with a tax professional to find out what rules and exceptions apply to your circumstances.
Open a stock trading account
You can compare features of stock trading platforms in the table below. Once you’ve decided on the right fit for your needs, click the “Go to site” button to get started.
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