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JuMei the latest Chinese company to file for U.S. IPO

Online cosmetics retailer JuMei follows JD.com and Sina Weibo, looks to raise up to $400 million

Financial trends and news by Steven Loeb
April 12, 2014 | Comments
Short URL: http://vator.tv/n/3646

The U.S. IPO market is having a comeback this year, and it is attracting all sorts of companies to try their hand at being public, including Care.com, Coupons.com, King Digital, Grubhub, Box, TrueCar, TubeMogul and Zendesk.

Interestingly it is also attracting a slew of companies from China.

Chinese online cosmetics retailer JuMei is following in the footsteps of online direct sales company JD.com and microblogging service Sina Weibo as the latest Chinese company to file for the an IPO in the U.S. market, it was revealed in a filing with the Securities and Exchange Commission on Friday.

The company is looking to raise a total of $400 million. It intends to list its stock under the symbol "JMEI," but it has not yet decided which exchange it will trade on. It was also not disclosed how many shares the company planned to sell or their expected price. 

JuMei saw roughly $483 million in net revenues in 2013, more than double the $233 million it saw in 2012. The company has been growing incredibly rapidly: in 2011, its revenue was only $21 million.

When broken down, the company generated $413.1 million of its revenue from merchandise sales, with the other $69.9 million coming from marketplace services. 

"This increase was primarily attributable to the increase in the number of active customers and total orders. The number of our active customers increased significantly from approximately 4.8 million in 2012 to approximately 10.5 million in 2013," it says in the filing.

"The number of our total orders increased from approximately 15.7 million in 2012 to approximately 36.0 million in 2013, among which the total number of orders fulfilled by our logistics centers increased from approximately 15.6 million in 2012 to 30.3 million 2013."

In all, the company's net income last year was $25 million, more than tripling from $8 million in 2012. It had a loss of $4 million in 2011. 

The $400 million that JuMei is looking to raise pales in comparison to the other Chinese Internet companies looking to enter the U.S. IPO market: JD.com filed to raise $1.5 billion in January, while Sina Weibo filed to raise $500 million in March. 

But none of those will compare to the amount that will be raised once e-commerce giant Alibaba enters the fray, something that is has already announced it will do some time this year. 

The Alibaba IPO is expected to be huge. The company is expected to sell roughly a 12% stake, which would translate to a $18.4 billion offering on a $153 billion valuation, according to Bloomberg

One big winner in this will be Yahoo. Despite selling back half of its 40% stake in Chinese e-commerce company Alibaba in September of 2012, for a total of $7.6 billion, Yahoo still owns a sizable amount of the company’s stock, roughly 23%.

(Image source: techinasia.com)


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