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58 Home postpones US listing: Bloomberg
Posted on Friday, 14 February 2020 10:37
Beijing 58 Information Technology is putting off plans to hold an initial public offering in the US as the coronavirus outbreak has brought the on-site household cleaning business to a standstill, sources told Bloomberg.
The online maid and home maintenance platform better known as 58 Home, and locally as 58 Daojia, had intended to launch a listing - for an overall valuation of USD 2.00 billion - in the first half of 2020.
However, as thousands of people are home-quarantined because of the outbreak, there is no demand for part-time cleaners or handymen.
Bloomberg’s sources added the company has not even managed to complete its pre-listing financing round, which was kicked off late last year.
58 Home is a platform that enables users to search, connect with, and purchase various home services, including domestic cleaning and home maintenance and freight transport.
Users can select individual providers online without going through middleman agency companies.
Cayman Islands-incorporated, Beijing-headquartered, US-listed 58.com owned 68.8 per cent of 58 Home, as at 30th September 2019.
It ceased consolidating financial results into its own statement when the mobile-based closed-loop transactional home services platform completed a series A financing in November 2015.
At the time, 58 Home raised USD 300.00 million from the likes of Alibaba, KKR, and Ping An.
In 2018 the platform pushed down majority of its businesses into its two subsidiaries, cargo and merchandise logistics and delivery services 58 Freight and 58 Daojia.
Alibaba has since exchanged certain equity interests for that in the transportation subsidiary.
58 Home now holds 89.7 per cent of 58 Daojia and 56.4 per cent of 58 Freight, as at 30th September 2019.
Bloomberg noted the group’s decision to postpone its IPO comes as other listing hopefuls either cancel or delay their own first-time share sales in Hong Kong, including Daikiya Group and InnoCare Phama.
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