Unique: Chinese e-commerce website Yunji Weidian taps banks for U.S. IPO – source

(Reuters) – Chinese e-commerce website Yunji Weidian has actually worked with financial investment banks for a going public it prepares to release in the United States early next year, a source with direct understanding of the matter said on Wednesday.

Yunji wants to bring an appraisal of in between $7 billion and $10 billion in the IPO, and has mandated Morgan Stanley, Credit Suisse Group AG and JPMorgan Chase & & Co to lead the listing on the Nasdaq stock exchange, the source said, requesting privacy since the strategies are not public.

The business, which recovered cost in 2017 and anticipates to be rewarding in 2018, has strategies to raise around $1 billion in the IPO, the source stated. Yunji has more than 35 million active users, the source included.

Agents for Yunji, Morgan Stanley, Credit Suisse and JPMorgan declined to comment.

The Yunji listing would follow other Chinese e-commerce companies public in the United States, consisting of Alibaba, JD.com and Pinduoduo Inc.

. Pinduoduo, which has a market capitalization of around $23 billion, went public in July in an IPO that priced at the top of its targeted range.

But since the IPO its stock has actually had a hard time, with Chinese regulators examining Pinduoduo after media reports of third-party suppliers selling counterfeit goods on its group-discounting marketplace.

Like Pinduoduo, Yunji enables consumers to purchase products both separately and as a group. Nevertheless, Yunji’s platform offers more Chinese and global brands.

Important to both Yunji and Pinduoduo’s quick growth has been the increase of China’s leading social media app WeChat, which users use to go over possible purchases.

Yunji’s main investors consist of Asia-focused personal equity firm Crescent Point and China’s CDH Investments.