Yoho seeks up to US$18.2 million in IPO, as Hong Kong e-commerce start-up eyes China expansion via JD.com, Tmall
- The retailer of electronics and home appliances will kick off its Hong Kong IPO on Thursday
- The launch comes amid an IPO dry spell that has seen a 92 per cent plunge in funds raised this year
Hong Kong e-commerce start-up Yoho Group will press ahead with its initial public offering on Thursday, braving a market slump, as it seeks to raise up to US$18.2 million to fund expansion in China through the online platforms of JD.com and Alibaba Group Holding.
Yoho Group will become the second Hong Kong-focused e-commerce operator on the city’s bourse, after the owner and operator of the HKTVmall platform.
The company is selling 55 million shares at HK$2.1 to HK$2.6 each, which at the top-end will help it raise HK$143 million (US$18.2 million), a fraction of the maximum US$300 million the company previously said it was initially targeting.
Still, it will be just the second company to tap the market this month, as the global IPO market has cooled amid interest-rate hikes in the US, concerns about global recession and inflation exacerbated by Russia’s invasion of Ukraine, and Covid lockdowns in China.
Yoho’s IPO will end on May 31, and the debut is slated for June 10, under the stock code “2347”.
“We remain confident that our business growth will continue to be supported by investors,” said Franz Wu, president and co-founder. “The e-commerce sector in Hong Kong is maturing, and we still see opportunities because the traditional retail model has not kept up with the change in retail consumers’ habits.”