Chinese online discount retailer Vipshop appoints banks for HK secondary listing

Chinese online discount retailer Vipshop Holdings Ltd has mandated three investment banks to carry out a secondary listing in Hong Kong in the second half of 2021, according to two sources with direct knowledge of the matter.

Goldman Sachs, JPMorgan and Morgan Stanley have started work on the deal, the people said.

It is likely Vipshop will aim to list between 5% and 10% of the company, which would raise up to $2 billion, according to one of those sources.

The sources could not be named because the information has not yet been made public.

Vipshop did not respond to a request for comment from Reuters on the appointment of the banks.

Goldman Sachs, JPMorgan and Morgan Stanley all declined to comment.

News of the mandates comes as China’s markets regulator said on Thursday it had launched an investigation into companies linked to Vipshop over possible unfair competition.

The entities targeted are Vipshop (China) Co Ltd and Guangzhou Vipshop E-Commerce Co Ltd, the regulator said in a statement, without elaborating on the probe.

Vipshop will cooperate with the regulators’ investigation, the company said on its official Weibo account on Thursday.. Vipshop shares fell in pre-open U.S. trading on Thursday by up to 7%.

The syndicate of banks working on the deal could be expanded closer to the time of the transaction launch, one of the sources said.

Vipshop was fined 500,000 yuan in December by China’s State Administration of Market Regulator (SAMR), alongside Alibaba’s Tmall and jd.com, for pricing irregularities revealed during the major Nov. 11 shopping festival in mainland China.

At least 13 Chinese companies listed in New York have carried out secondary issues in Hong Kong since November 2019. The transactions have raised $32.58 billion, according to Dealogic data.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.