Chinese lifestyle and video-sharing platform Xiaohongshu is preparing for a Hong Kong initial public offering as early as the end of this year, according to a report by The Wall Street Journal on June 17. Major investors are seeking a valuation of over $70 billion for the company, which was valued at more than $50 billion in recent private secondary market transactions.
Founded in 2013 by Mao Wenchao and Qu Fang, Xiaohongshu started as a shopping guide app and has evolved into one of China's most influential social media platforms. The platform features user-generated content covering beauty, fashion, travel, food, and other lifestyle topics. The company is expected to post a net profit of over $3 billion this year.
If successful, the IPO would make Xiaohongshu another major Chinese internet company to list in Hong Kong. The valuation target reflects the capital market's recognition of its business model and growth prospects.