Chinese luxury online retailer Secoo Holding Ltd. has filed for an IPO of up to $100 million on the Nasdaq Global Market.
The Beijing-based company, which is backed by Siku Holdings, IDG Funds, CMC Galaxy Holdings, units of Ping An Insurance (Group) Co. of China Ltd., and Ventech China II SICAR, said in a Aug. 25 prospectus that it plans to list American depositary shares under the symbol SECO. Pricing details are yet to be disclosed.
Gold Ease Global Ltd., a subsidiary of Chinese real estate developer Country Garden Holdings Co. Ltd., and YTL E-Solutions Berhad, a unit of Malaysian infrastructure conglomerate YTL Corp Bhd., have agreed to purchase $20.0 million and $10.0 million of Secoo's Class A ordinary shares, respectively, at a price per share equal to the IPO price, through a private placement.
Jefferies LLC is acting as the underwriter and sole book-running manager of the offering.
Secoo intends to use the net proceeds from the IPO and concurrent private placements to invest in its marketing and branding efforts, including expanding brand coverage and promotional activities, setting up more of its offline "experience centers," and growing its pool of active customers.
The luxury e-commerce business offers a number of brands such as Tod's SpA, Salvatore Ferragamo SpA and Versace.
Secoo said it was recognized as Asia's largest online integrated luxury products and services platform by gross merchandise volume in 2016, with year-over-year growth of 34.9% to $511.9 million.
The average sales per order on its online platform was more than $500 in the first half, higher than other major e-commerce retailers in Asia, according to a report by consulting firm Frost & Sullivan that was cited in the prospectus.
Secoo's IPO application comes amid intensifying competition in China's online luxury market, with local e-commerce giants such as Alibaba Group Holding Ltd. and JD.com Inc. also stepping up their games.
Since its establishment in 2011, Secoo has accumulated 15.1 million registered members as of June 30, with about 300,000 active customers in 2016. It has an integrated online and offline shopping platform that comprises the Secoo.com website, mobile apps and experience centers located in mainland China, Hong Kong and Malaysia.
In addition, the company offers the payment tool Secoo Check, which allows shoppers to pay in installments on its online shopping platform. It is also cooperating with brand boutiques so that customers can pick up products ordered online.
The company recorded a net profit of $7.7 million in the first half, compared to a net loss of about $11.4 million in the year-ago period.