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Meiliworks holds bake-off for possible US IPO: Bloomberg
Posted on Tuesday, 17 April 2018 07:10
Meiliworks has held a bake-off for banks to pitch for a position on an initial public offering (IPO) that could value the Chinese startup akin to a fashion and beauty retail Pinterest site at roughly USD 4.00 billion, Bloomberg reported.
Sources with knowledge of the process told the news provider the operator of the social e-commerce platforms Mogujie and Meilishuo is attracted to a listing in the US, despite Beijing trying to tempt them to its A-share market.
These people noted the member of the unicorn club is still in talks with several investment banks regarding debut before adding the overall valuation is just an initial target and may change if an IPO goes ahead.
Meiliworks, as it is today, was formed in 2016 when Mogujie took over Tencent-backed competitor Meilishuo in a deal reportedly valued at roughly USD 2.50 billion at the time.
The combination of the fashion-focused platforms mainly for women - that link shopping with social networking – barely made a dint in the e-commerce space dominated by Alibaba and Tencent’s JD.com.
However, the merger must have made a positive impact on scale and valuation, enough so that two years later and the company is working towards an overseas listing.
Mogujie launched as a buyer-based social network fashion app and by the time of the takeover in 2016 was already flagged on Fortune’s Unicorn List, which names more than 100 privately-held companies valued at more than USD 1.00 billion.
Similarly, Meilishuo helps users find clothing, cosmetics, bags, shoes, and accessories which would be most suitable for their appearance and style.
The shoppers can discuss trends and share visuals, seek expert advice, take part in group buying, and share online links and information on their favourite items.
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