Chinese e-commerce platform Yunji Weidian has roped in investment banks for floating its US$1 billion initial public offering (IPO), planned to hit the US market early next year, according to Reuters citing a company insider.
Yunji has authorized Morgan Stanley, Credit Suisse Group AG and JPMorgan Chase & Co to lead the listing on the Nasdaq stock exchange, said the source.
The company had reported break even in 2017 and it expects to be profitable this year. In addition, it hopes to fetch a valuation of between US$7 billion and US$10 billion in the IPO, it said.
The source requested anonymity because the plans are not public.
Yunji, Morgan Stanley, Credit Suisse and JPMorgan did not immediately respond to China Money Network’s email seeking for comments.
Launched in May 2015, Yunji has sealed strategic cooperation deals with companies at home and abroad including French food group Danone, French personal care company L’Oréal S.A., American healthcare powerhouse Johnson & Johnson and Chinese state-owned company of dairy industry Yili Group.
As of August 2018, the company has over 33 million registered users, said the company website.
The company had secured a US$120 million series B financing round led by CDH Investment in April. Huaxing New Economic Fund also participated in the round. Yunji’s main investors include Asia-focused private equity firm Crescent Point and Chinese alternative asset management firm CDH Investments.
Yunji’s IPO plan comes after its Chinese peers such as Alibaba, JD.com and Pinduoduo Inc. have already set base in the US stock market.
Pinduoduo, the like of Yunji which allows consumers to purchase items as a team, went public in America in July 2018. The IPO of Pinduoduo put the market value of the company at US$28.8 billion, a price at the top of its targeted range.
The primary target customers of Yunji are small and medium distribution sellers who have lost their competitive advantage in price and logistics due to the trend of brands towards direct sales, as well as tens of millions of purchasing guides in traditional supermarkets. The company cooperates with shipping company SF Express to enable same-day delivery.