Venture-Backed Jumei Completes $245M IPO

Chinese beauty products e-commerce firm Jumei International Holding Ltd. has completed a U.S. IPO, raising about US$245 million by offering 11.14 million American Depository Shares at US$22 per share.

About 61% of the shares offered were purchased by one investor, global growth equity investment firm General Atlantic, whose Singapore fund agreed to invest US$150 million in the IPO in early May.

Jumei said on May 6th in a securities filing that it would raise a maximum of US$204 million in total. That is much lower than the US$400 million it said it would raise in April. Initially, the media reported that the company was planning to raise US$600 million.

Jumei previously received tens of millions U.S. dollars series A funding from Sequoia Capital and K2 Ventures in 2011.

According to the company’s IPO filings, Sequoia Capital and K2 Ventures own 18.7% and 10.3% of Jumei.com respectively. Xu Xiaoping, founder of Chinese seed fund Zhan Fund, owns 8.8% of the company as well.

Founded in 2010, Jumei.com sells luxury cosmetics brands such as Dior and Lancome, often through flash sales, via the web and its mobile apps.

Jumei.com says it is the No. 1 online retailer of beauty products in China with 10.5 million active customers.

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