Two Chinese companies – social e-commerce platform Yunji and online plastic surgery services marketplace So-Young International – have set the terms for their initial public offering (IPO) on the US stock market, with plans to raise $162 million and $166 million, respectively.
E-commerce platform Yunji raising $162m at mid-range of IPO
Chinese social e-commerce platform Yunji plans to raise $162 million in its IPO in the US by offering 13.5 million American depositary shares (ADS) at a price range of $11 to $13 million, according to the company’s amended US Securities and Exchange Commission (SEC) filing.
The company, founded in 2015, said its existing shareholders – Crescent Point and Trustbridge Partners – have indicated interest to purchase $100 million worth of ADSs in the offering, or about 62 per cent of the deal.
The IPO will give Yunji a fully diluted market value of $2.8 billion at the midpoint of the proposed range but a Reuters report in September 2018 citing sources had said that Yunji hopes to fetch a valuation of between $7 billion and $10 billion in the IPO.
Founded in 2015, Yunji targets small and medium distribution sellers by helping them establish and maintain their online platforms, the company said. The company raised about $36.1 million in a Series A round led by Crescent Point Capital and joined by Eastern Bell Venture Capital in 2016.
As of December 31, 2018, it had accumulated 7.4 million members, according to the company. It also booked about $1.9 billion in sales for the 12 months that ended December 31, 2018, its prospectus showed.
Plastic surgery services platform So-Young sets terms for US IPO
So-Young International, a Matrix Partners China-backed online marketplace for plastic surgery services, is raising $166 million in the US by offering 13 million ADSs at a price range of $11.80 to $13.80, according to its latest SEC filing.
The net proceeds of the offering will be used mainly for research and development, brand promotion and user acquisition efforts, business expansion, as well as other general corporate purposes, according to the company.
So-Young, which claims to be the most popular online destination for discovering, evaluating, and reserving medical aesthetic services in China, said its total ADSs offering could reach 14.95 million if the underwriters exercise their over-allotment option.
Launched in November 2013, So-Young International said it has facilitated medical aesthetic treatment transactions with aggregate value of Rmb2.1 billion ($306.6 million) through its platform last year, accounting for 33.1 per cent of the total amount paid for medical aesthetic treatment booked online last year.
So-Young generates revenues primarily through information service fees and reservation service fees charged to medical aesthetic service providers. Its revenues increased rapidly by 428.2 per cent from Rmb49.1 million ($7.3 million) in 2016 to Rmb617.2 million ($92 million) last year.
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Chinese e-commerce platform Yunji files for US IPO
Chinese plastic surgery services platform So-Young files for US IPO