TechFlow reported on June 17 that, according to The Wall Street Journal, Chinese lifestyle and video-sharing platform Xiaohongshu is planning to list in Hong Kong as early as the end of this year. The report said the company’s major investors are seeking to set its valuation at more than $70 billion.
The valuation target follows recent private secondary market transactions in which Xiaohongshu was valued at more than $50 billion. A valuation above $70 billion would place the proposed Hong Kong IPO target higher than the level reflected in those recent private transactions.
Xiaohongshu was founded in 2013 by Mao Wenchao and Qu Fang. It began as a shopping guide app and has since developed into one of China’s most influential social media platforms. The report also said the company is expected to generate more than $3 billion in net profit this year.