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Vipshop.com on verge of NYSE listing
By Lu Nengneng |
March 23, 2012, Friday
|
Online Edition
Online Edition
ONLINE discount retailer Vipshop.com is expected to list on the New York Stock Exchange later today as the first Chinese company to go public in the US since last August.
According to the International Financing Review under Thomson Reuters, the company has raised US$71.5 million through issuing over 11 million primary shares and a 15 percent greenshoe at US$6.5 per share, 23.5 percent down from the low end of its proposed price range of US$8.5 to US$10.5.
Founded in 2008, the company sells branded clothes, cosmetics, handbags and leather products at high discounts. It posted US$227.1 million in revenue after a nearly 6-time annual increase last year, but its losses still amounted to US$107.3 million.
Several industrial experts today expressed doubts over the company's profitability, especially the high operation costs of supply chains to support its "flash sales" model.
Li Guoqing, CEO of NYSE-listed Chinese e-commerce company Dangdang, said yesterday at a forum that Vipshop had received no orders from investors on its IPO roadshows in Hong Kong.
Market observers said the shares' first-day performance will indicate the current investor sentiment towards China-concept stocks, which faltered amid a trust crisis last year after short-sellers like Muddy Waters and Citron Research exposed some of their fraudulent deeds.
Fourteen Chinese companies listed in the US last year while 29 got delisted. According to Beijing-based research firm Analysys International, US$2.2 billion were raised through those initial pubic offerings, 43 percent down from 2010, and the delisting cases involved up to US$5.7 billion.
According to the International Financing Review under Thomson Reuters, the company has raised US$71.5 million through issuing over 11 million primary shares and a 15 percent greenshoe at US$6.5 per share, 23.5 percent down from the low end of its proposed price range of US$8.5 to US$10.5.
Founded in 2008, the company sells branded clothes, cosmetics, handbags and leather products at high discounts. It posted US$227.1 million in revenue after a nearly 6-time annual increase last year, but its losses still amounted to US$107.3 million.
Several industrial experts today expressed doubts over the company's profitability, especially the high operation costs of supply chains to support its "flash sales" model.
Li Guoqing, CEO of NYSE-listed Chinese e-commerce company Dangdang, said yesterday at a forum that Vipshop had received no orders from investors on its IPO roadshows in Hong Kong.
Market observers said the shares' first-day performance will indicate the current investor sentiment towards China-concept stocks, which faltered amid a trust crisis last year after short-sellers like Muddy Waters and Citron Research exposed some of their fraudulent deeds.
Fourteen Chinese companies listed in the US last year while 29 got delisted. According to Beijing-based research firm Analysys International, US$2.2 billion were raised through those initial pubic offerings, 43 percent down from 2010, and the delisting cases involved up to US$5.7 billion.
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