PlatformMeili may turn to US for IPO
Chinese fashion-focused e-commerce company PlatformMeili Inc is seeking US$500 million in an IPO aimed for the second half of this year.
Created through a 2016 merger between online fashion retailer Meilishuo and rival Mogujie, Meili has mandated Morgan Stanley to lead the listing together with Credit Suisse and China Renaissance, Reuters reports. With a value of about $3 billion at the time of the merger, Meili will go public in the US, insiders say.
Meili has not responded to Reuters’ requests for comment while the three banks have declined comment.
One of the insiders says Meili favours a US listing as the company, which is not yet profitable, believes investors there will be more familiar with its e-commerce business model.
Meilishuo, which means “beauty talk”, and Mogujie, or “Mushroom Street”, both started as online marketplaces and social sites targeting female consumers. They evolved into shopping sites similar to Alibaba’s Taobao and merged in January 2016 to create a fashion services group including a platform for internet celebrities and models, and its own fashion brand.
Founded in 2009, Meilishuo includes Tencent Holdings, GGV Capital and Sequoia Capital China as backers, while Mogujie, established two years later by a former Alibaba executive, counts Ping An Ventures, Hillhouse Capital and Hopu Investment Management as investors.