Chinese Groupon Clone Lashou Files For US IPO
- Posted by bbishop
- on October 28th, 2011
502 Bad Gateway
Our revenues grew from nil for the period from September 15, 2009 (date of inception) to December 31, 2009 to RMB10.5 million (US$1.6 million) for the year ended December 31, 2010 and to RMB57.8 million (US$8.9 million) for the six months ended June 30, 2011. Our gross billings grew from nil for the period from September 15, 2009 (date of inception) to December 31, 2009 to RMB123.2 million (US$19.1 million) for the year ended December 31, 2010 and to RMB626.7 million (US$97.0 million) for the six months ended June 30, 2011.
We are a growth stage company and incurred sales and marketing expenses for the year ended December 31, 2010 and the six months ended June 30, 2011 of RMB40.0 million (US$6.2 million) and RMB326.5 million (US$50.5 million), respectively. Our net losses were RMB0.7 million for the period from September 15, 2009 (date of inception) to December 31, 2009, RMB53.5 million (US$8.3 million) for the year ended December 31, 2010 and RMB391.3 million (US$60.5 million) for the six months ended June 30, 2011. As of June 30, 2011, our accumulated deficit was RMB474.2 million (US$73.4 million).
Due to legal restrictions in China, we conduct our business mainly through Beijing Lashou, our consolidated variable interest entity in China, that we effectively control through contractual arrangements.
The two biggest investors are GSR Ventures, which owns 38.9%, and Leonard Blavatnik’s Rebate Networks, which owns 12.1%, pre-IPO. Herman Yu, Sina ($SINA) CFO, and Gong Yu, Qiyi ($BIDU) CEO, will join the board as independent directors when the IPO goes effective.
Lashou’s bankers are Barclays Capital, CICC HK Securities and Jeffries.
Lashou is trying to draft off the Groupon (GRPN) IPO. Will US investors bite, or will the banks have to sell the deal in Asia, probably to high net worth Chinese accounts, as seems to have been the case in several of the China Internet IPOs over the last year?
One bright spot from this filing is that clearly the SEC is still approving VIE structures.
Lashou is doing better than Gaopeng, Groupon’s China JV, and the bankers probably love Groupon’s crazy $500m valuation of Gaopeng (see Did Groupon Value Its China JV Gaopeng at $500m in July? | DigiCha).
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Bill Bishop is an American living in Beijing. He is bilingual and has experience working in both US and China. In 1997 he co-founded CBS MarketWatch and stayed until the sale in 2004 to Dow Jones. He was never a journalist, and instead worked in several business roles over the years, the last as head of the MarketWatch consumer Internet business. More »
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