June 6, 2013 0 Comments
The Effect of LightInTheBox’s Successful IPO
Ecommerce shopping site LightInTheBox is the first Chinese company to go public in the US this year. The Beijing-based company raised $79 million and is now valued at $465 million. The ecommerce startup, which sells inexpensive products, had priced its IPO at $9.50 and by 4pm it gained $2.11, to $11.61, jumping 22 percent on its first day.
LightInTheBox’s key executives have been hard at work before the IPO. Its founder and Chief Executive Alan Guo, formerly from Google China, held a two-week roadshow, travelling to London and several US cities, with lots of face-to-face meetings with investors.
The last two Chinese companies that had their US IPOs in 2012 were ecommerce site Vishop and social-networking startup YY. Both had dismal public debuts but have since significantly improved. Vipshop’s value has leaped by 436 percent while YY has climbed 143 percent since its IPO. LightInTheBox’s triumph helps fuel the interest of the US investors in Chinese companies, while encouraging Asian startups that the same can be achieved.
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