China’s LightInTheBox raises $79m through US IPO
VC-backed Chinese online retailer LightInTheBox saw its stock jump 22% on its first day of trading in New York, following an IPO that raised $79 million. It is the first Chinese company to go public in the US this year, and only the second to make the jump in the last 12 months.
The offering was priced at $9.50 per share - the mid point of the indicative range - and then the stock closed at $11.60 on Thursday. The company filed its IPO application in April, planning to sell 8.3 million American depositary shares to raise up to $87 million on the New York Stock Exchange (NYSE).
"We are delighted to welcome LightInTheBox to the NYSE, which is the home to 77 other listed companies from mainland China," said Scott Cutler, executive vice president and head of global listings at NYSE Euronext.
Ceyuan Ventures holds 26.4% of the company, while GSR Ventures and Trustbridge Partners own 20.6% and 6.8%, respectively. None of the VC investors sold shares in the IPO, although their holdings have been diluted slightly as a result of the offering.
The company, which delivers Chinese products to consumers across the globe, will use the proceeds to finance business operations, including technology infrastructure investment, launching new products and brand marketing.
Driven by the growing demand from online consumers, LightInTheBox saw its net revenues grow from $6.3 million in 2008 to $200 million in 2012. However, it posted net losses of $21.9 million, $24.5 million and $4.2 million in 2010, 2011 and 2012. The company recorded a profit of $2.6 million for the quarter ended March 2013.
A total of 15 Chinese companies went public in the US in 2011 but this fell to just two in 2012 - discount clothing website Vipshop and social networking platform YY.
Several other companies are expected to attempt listings this year, including 360Buy and Vancl, China's leading B2C direct sales e-commerce company and its largest online clothing retailer, respectively. China Auto Rental might also return to the market.
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