UPDATE 1-SoftBank-backed Dingdong slashes U.S. IPO target by over 70%

(Adds new shares on offer, other details)

June 28 (Reuters) - 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.

Reporting by Niket Nishant in Bengaluru; Editing by Devika Syamnath