Rumor: 360Buy to IPO in September 2012
Sina Tech, 5/31/12
An industry source revealed today that Beijing-based B2C e-commerce platform 360Buy held a three-hour analyst meeting in Hong Kong from 2 PM to 5 PM on May 30. According to an analyst present, 360Buy could submit documents to US Securities and Exchange Commission as soon as June, if all goes well, to apply for a September IPO.
360Buy CEO Liu Qiangdong and CFO Chen Shengqiang were present at the meeting, as were employees of securities firms including Goldman Sachs, Merrill Lynch, JP Morgan, UBS, and CICC Securities Holdings. 360Buy announced sales figures at the meeting, stating revenues of RMB 21.2 bln (26.9 bln including that from its open platform) for 2011.
Other data released by 360Buy included: gross profit margins of 5.5%, delivery and logistics expenditures of 6.6%, advertising expenditures of 2.3% (360Buy spent RMB 490 mln on advertising in 2011), technology and management expenditures of around 1.5%, net losses of around 5%, days payable outstanding (DPO) period of 38 days, and an inventory turnover period of 35 days.
360Buy predicts revenues of RMB 45 bln in 2012, RMB 70 bln in 2013, and RMB 19 bln to 22 bln in 2015.
After the meeting, the source said, 360Buy discussed valuation with the brokerages present. The company hopes for a valuation of USD 10 to 12 bln, while the brokerages discussed a valuation of USD 6 bln.
Editor's Note: For more information on this topic, please see "Rumor: 360Buy Hires IPO Underwriters," MD 4/06/12 and "Rumor: 360Buy to Resume IPO Process," MD 3/22/12 issues.
Keywords: forecast Liu Qiangdong e-commerce Internet IPO valuation B2C 360buy logistics open platform Chen Shengqiang HR loss revenue
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