China's 58.com plans for $100m IPO in the US - report

According to Bloomberg, the Beijing-based company is working with banks on the offering. If successful, it would become the second mainland China-based firm to go public in the US this year, and only the fourth to do so since the end of 2011.

Founded in 2005, 58.com is modeled after US site Craigslist, providing classified ads for flat rental, recruitment, second hand goods and cars. Its services cover over 300 cities in China. Most of the ads are free but it charges if the advertisers want their posts to appear in front of the listings.

The company's VC investors include SAIF Partners, DCM and Warburg Pincus. AVCJ Research shows SAIF initially invested $1 million in 58.com in 2006 and returned to put in an additional $5.77 million two years later.

The VC then re-upped in March 2010 with a $15 million round alongside DCM. DCM returned later that year to invest another $45 million together with Warburg Pincus.

Slowing economic growth in Asia and concern among US investors over accounting and auditing standards at Chinese companies has stemmed the flow of US IPOs from China, which peaked in 2010, when 41 such offerings raised $4.1 billion.

In 2011 a total of 15 Chinese companies went public in the US and last year it was just two - discount clothing website Vipshop and Guangzhou-based social networking platform YY, which raised $94.2 million.

Last month, Beijing-based online retailer LightInTheBox raised $79 million in its US debut - its VC-backers include Ceyuan Ventures, GSR Venture and Trustbridge Ventures.

Several other companies are expected to attempt listings this year, including 360Buy and Vancl, China's leading B2C direct sales e-commerce company and China's largest online clothing retailer, respectively. China Auto Rental might also return to the market.

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• Topics
• Greater China
• North America
• Technology
• Exits
• Technology
• IPO
• USA
• China
• Exit