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Lashou Expects to Raise USD 67 Mln in IPO

SEC, 11/07/11

Chinese group buy site operator Lashou Group has announced it will offer 5,356,990 American depositary shares (ADSs) on the Nasdaq Global Market at USD 13-15 per ADS to raise approximately USD 67 mln. Each ADS represents 36 Class B ordinary shares at par value USD 0.0000005 per share.

Lashou expects to receive net proceeds of approximately USD 66.6 mln from this offering (or USD 77.0 mln if the underwriters exercise their 30-day option to purchase up to 803,548 additional ADSs in full), after deducting the underwriting discounts, commissions and estimated offering expenses payable by us and assuming an initial public offering price of USD 14.00 per ADS.

Lashou plans to invest approximately USD 20.0 mln to increase marketing efforts and expand its sales network and delivery and fulfillment infrastructure; approximately USD 20.0 mln to build and establish a call center and an operations center; approximately USD 10.0 mln for research and development; approximately USD 2.0 mln to improve enterprise resource planning, or ERP, system; approximately USD 4.0 mln to further enhance technology infrastructure; and the balance of the proceeds for general corporate purposes, including working capital needs and potential mergers and acquisitions, although Lashou has not currently identified any such potential transaction targets.

Editor's Note: To view Lashou's amended IPO filing, please click here. For more information on this topic, please see "Lashou Files for Nasdaq IPO," MD 10/31/11 issue.

Keywords: B2C Internet IPO Nasdaq Lashou e-commerce group buying

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