Subsidiary Of Venture-Backed E-House Plans $200M IPO

Shanghai-based real estate services company E-House (China) Holdings Limited says its wholly owned subsidiary, Leju Holdings Limited, is planning to raise as much as US$150 million in an IPO.

Leju Holdings has submitted a draft registration to the U.S. Securities and Exchange Commission to sell shares to the public on the New York Stock Exchange, according to a company announcement.

The proposed number and price of shares to be offered have not yet been determined.

E-House may sell a portion of its Leju’s shares, but expects to remain Leju’s majority shareholder after the IPO.

Leju says it will use the proceeds to expand into other markets and improve its technology infrastructure. Credit Suisse, J.P. Morgan and China Renaissance are the lead underwriters of the offering.

As an integrated real estate e-commerce platform under E-house, Leju offers real estate e-commerce, online advertising and listing services in China. The company also operates real estate and home furnishing websites for Sina Corp and Baidu.

Leju generated revenue of US$335.4 million, which nearly doubled from US$171.3 million in 2012, and a profit of US$42.7 million in 2013.

In 2006, E-house received US$25 million strategic investment from China Renaissance Capital Investment, DLJ Real Estate Partners, Susquehanna Asia Investment and Farallon Capital.

Founded in 2000, U.S.-listed E-House offers real estate services, including online advertising and e-commerce, primary sales agency, secondary brokerage, information and consulting, offline advertising and promotion, and real estate investment management services.

This month, E-House formed a property-oriented financial services joint venture with Sina, Sequoia Capital China, and Yunfeng Capital, in which E-House and Sina will each have a 42.5% stake.