Shenzhen lottery site 500wan.com eyes $150m US IPO – report
Chinese venture capital-backed local lottery website 500wan.com plans on raising at least $150 million through an IPO in the US later this year.
According to China Business News, the Shenzhen-based company is working with Deutsche Bank and Stifel Financial Corp. on the offering. Ernst & Young is said to be their auditor.
Founded in 2001, 500wan.com has so far attracted 1,500 online registered users, generating most of its income from sports lottery sales. Revenue reached RMB3 billion in 2011. Its net profit is expected to amount to approximately RMB300 million as online distributors usually get an 7%-10% commission in average.
China's lottery industry revenue jumped by 16% to RMB149.7 billion - including RMB85.3 billion of welfare lottery and RMB64.4 billion sports lottery - during the first six months of this year, according to China's Ministry of Finance.
AVCJ Research shows Susquehanna Asia Investment committed $9.8 million in the company in 2007, which also counts Sequoia Capital and IDG Capital as investors.
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.
Two months ago, Beijing-based online retailer LightInTheBox raised $79 million in its US debut - its VC-backers include Ceyuan Ventures, GSR Venture and Trustbridge Ventures. It was 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.
A total of 15 Chinese companies went public in the US in 2011 but this fell to just two last year - discount clothing website Vipshop and Guangzhou-based social networking platform YY, which raised $94.2 million.
Earlier this month, local classifieds website 58.com was said to raise at least $100 million through a US IPO later this year. 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.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.