Meilishuo on the search for IPO in New York
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Online fashion retailer Meilishuo, backed by Tencent Holdings, is seeking an IPO in the US that could value the start-up at about US$4 billion.
Many tech corporations in China opt for New York for their debut listings as it offers a wide investor base and higher international profile.
Meilishuo is reported to be talking with investment banks about the move.
Founded in 2009, the company sells clothes, shoes and handbags. In 2016 it had about 15,000 merchants on its website and a mobile app that had been downloaded 100 million times. That year it merged with rival Mogujie, which was founded in 2011 and had about 130 million registered users. The re-formed company was valued at $3 billion.
Questions & Answers
Q.Why is Meilishuo considering an IPO in the United States?
Why is Meilishuo considering an IPO in the United States?
Chinese tech companies often choose New York for their initial public offerings because it provides access to a broad investor base. The US market also offers a higher international profile for their debut listings.
Q.What products does Meilishuo sell on its platform?
What products does Meilishuo sell on its platform?
Meilishuo operates as an online fashion retailer. The company's offerings include a variety of clothing items, alongside footwear and handbags for its customers.
Q.How did Meilishuo's valuation change after merging with Mogujie?
How did Meilishuo's valuation change after merging with Mogujie?
Before the merger, Meilishuo was seeking an IPO that could value it at about US$4 billion. Following its merger with rival Mogujie, the newly re-formed company was subsequently valued at $3 billion.
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