China’s used electronics trading platform Aihuishou eyes up to $1b in US IPO

Photo by rupixen.com on Unsplash

Chinese secondhand electronics trading platform Aihuishou is aiming to raise $500 million to $1 billion in a U.S. initial public offering by early June, said two people with direct knowledge.

The 10-year-old company, backed by online retailer JD.Com Inc, is targeting a valuation of $4 billion to $5 billion in the float, said the people.

Aihuishou has hired Bank of America and Goldman Sachs to work on the IPO and plans to file around mid-May, said the sources, who declined to be named as the information is confidential.

The company and the two banks declined to comment.

Aihuishou recycles second-hand mobile phones, computers, laptops, cameras and other electronics products from individuals and corporations and resells them on its website and apps, as well as offline stores in 140 cities, according to its website.

The company aims to attract investors with its environmental, social and governance (ESG)-friendly business nature, said one of the people.

It also counts International Finance Corporation and Tiger Global as investors, the website shows.

JD.Com disclosed in 2019 it would merge its own Paipai secondhand business into Aihuishou with certain exclusive traffic resources for the next five years, and additionally invest $20 million in cash in exchange for a non-controlling interest in the company.

In February, Aihuishou completed a $200 million pre-IPO fundraising in which JD.Com, its biggest shareholder, also invested, according to one of the people. The company declined to comment on the fundraising.

Chinese IPOs in the United States have been worth about $4.3 billion so far in 2021, according to Refinitiv.

There was $12.03 billion worth of deals in 2020, the data showed.

Reuters

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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.