US-listed luxury retailer Secoo’s chairman offers to take the company private

Photo: freestocks / Unsplash

Nasdaq-listed Chinese luxury retailer Secoo may join the exodus of US-listed Chinese companies from American stock exchanges, as Washington increases its scrutiny amid mounting tech and trade tensions between the world’s two largest economies.

Secoo’s board has received an offer from its founder, chairman and CEO Li Rixue to take the company private, according to a stock filing on Monday.

Li proposed to purchase the American depositary shares (ADSs) he and his affiliates do not already own for $3.27 each, representing a premium of 10.5% to Secoo’s Monday closing price of $2.96, the statement said.

Secoo said that its board has formed a special committee to evaluate the proposed deal, adding that there can be no assurance that any definitive offer will be made.

Secoo’s shares closed up 22.82% on Monday.

Beijing-based Secoo runs an integrated shopping platform consisting of its website, apps and offline experience centers selling products from more than 3,800 global and domestic brands.

Secoo’s gross merchandise volume (GMV) reached 4.1 billion yuan ($606.9 million) in the third quarter, up 12.5% from a year earlier. Its net income was 21.8 million yuan, down from 60.9 million yuan in the same period of last year, according to its latest earnings report.

The news comes two months after Ruhnn, a Chinese firm that promotes e-commerce through online influencers, announced the receipt of an offer to take it private from three founders, a little more than a year after listing on the Nasdaq.

This story was first published on Caixin Global.

Singapore Reporter/s

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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.