JD.Com-Backed British E-Commerce Platform Farfetch Aims to Raise USD100 Million in US IPO
(Yicai Global) Aug. 21 — Farfetch, a UK-based high-end shopping platform, which hails China’s e-commerce giant JD.Com as one of its largest shareholders, has filed for an initial public offering, planning to raise up to USD100 million.
Farfetch submitted its application to go public on the New York Stock Exchange under ticker [FTCH], the prospectus shows, while not disclosing the scale of share issuance nor the price range.
The British fashion platform has had a complicated year so far as it reported that losses more than doubled to USD68.4 million in the first six months of the year despite a 55 percent increase in revenue to USD268 million. The platform has managed to attract a large number of customers, thanks to its expansive and quick delivery, and close ties with haute couture brands such as Chanel, Gucci, and Balenciaga.
The worth of global market for personal luxury goods was estimated to be USD307 billion last year and is expected to rise 45 percent to USD446 billion by 2025, the prospectus said, citing data from US consultancy firm Bain.
The clothes and apparel seller’s target of raising US100 million is modest in comparison to other recent listings of Chinese companies, the biggest of which have, however, underachieved their goals. Telecom infrastructure firm China Tower amassed less than 80 percent of its initial aim at USD6.9 billion early this month and smartphone maker Xiaomi also underwhelmed while getting USD4.7 billion in June, less than half of its target.
Some of the underwriters for the upcoming IPO include US investment firm Goldman Sachs, Swiss investment bank Credit Suisse, US financial services company JP Morgan, and London-headquartered UBS Investment Bank.
Last year in June, JD.Com invested USD397 million in Farfetch and became one of its major shareholders, after which the Chinese company’s Chief Executive Liu Qiangdong joined the target firm’s board of directors.
Editor: Emmi Laine
