Chinese unicorn Perfect Diary parent Yatsen’s shares soar in US debut

Pedestrians walk past the New York Stock Exchange (NYSE) in New York, U.S., on Friday, Aug. 18, 2017. Photographer: Michael Nagle/Bloomberg

Shares of Yatsen Holding Ltd, the parent company of China-based beauty unicorn Perfect Diary, jumped 66% in their U.S. market debut on Thursday, adding to a host of blockbuster initial public offerings (IPOs) this year.

The firm’s shares opened at $17.51 per American depositary share (ADS), well above the IPO price of $10.50 per ADS.

Earlier in the session, Yatsen had priced its offering of 58.75 million ADSs on the New York Stock Exchange at the top-end of its range of $8.50 to $10.50 per ADS, raising $617 million.

Founded in 2016, Yatsen has launched three fast-growing, cosmetics and skincare brands — Perfect Diary, Little Ondine, and Abby’s Choice.

With chat groups, video streams and low prices for foundation, Perfect Diary emerged out of nowhere four years ago to become a cosmetics giant for the digital age, trailing only L’Oreal SA and LVMH in the world’s No. 2 market for make-up.

As of Sept. 30, Yatsen had more than 200 stores across China, an increase from 40 stores at the end of 2019.

“The core focus is still the domestic market in the next three to five years expand,” said Yatsen CEO Huang Jinfeng. “We will fund research and development, manufacturing, and looking to open 600 to 1,000 stores.”

Yatsen is backed by Hillhouse Capital, Sequoia Capital, Tiger Global Management, Boyu Capital and Chinese Culture Group.

Yatsen‘s IPO comes at a time when U.S.-listed Chinese companies are facing tightened scrutiny and strict audit requirements from U.S. regulators.

Sentiment toward Chinese firms among U.S. investors has also been hit by the fallout from Luckin Coffee Inc. The coffee chain, which was listed on the Nasdaq, earlier this year disclosed that some of its employees fabricated sales accounts.

Goldman Sachs, Morgan Stanley and CICC are the lead underwriters of Yatsen‘s IPO.

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.