On June 17, the Wall Street Journal reported that Chinese lifestyle and video-sharing platform Xiaohongshu is actively preparing for an initial public offering (IPO) in Hong Kong, targeting completion by the end of this year. Sources said major investors are seeking a valuation above $70 billion. The company was valued at over $50 billion in recent private secondary market transactions, implying a potential increase of about 40% for the IPO target valuation.
Founded in 2013 by Mao Wenchao and Qu Fang, Xiaohongshu started as an overseas shopping guide app. Over the past decade, it has evolved into a comprehensive community integrating lifestyle sharing, video social networking, and e-commerce, becoming one of China's most influential social media platforms. Its content spans beauty, travel, food, fashion, and other verticals, boasting a large user base and serving as a key brand marketing channel.
The report estimates that Xiaohongshu's net profit will exceed $3 billion this year, demonstrating robust earnings growth. A successful Hong Kong listing would make it one of the most anticipated tech IPOs of the year, injecting vitality into the Hong Kong capital market.