AAA Lashou files for $100m IPO

Lashou files for $100m IPO

China-based group buying website Lashou.com filed with the US Securities & Exchanges Commission for an initial public offering (IPO) on Friday. The IPO could be worth up to $100m.

According to the filing, Lashou’s shareholders include venture capital fund GSR Ventures, which owns 38.9%, and Rebate Networks, which holds 12.1% of Lashou’s stock. Germany-based Rebate has either founded or invested in 24 daily deal and group buying websites around the world.

Rebate and GSR were among Lashou’s series B investors as it raised $50m in December 2010, with venture capital firm Tenaya Capital and investment firm Norwest Venture Partners. GSR and institutional business angel Taishan previously funded Lashou’s $5m series A round in May of that year.

Lashou’s series C round raised $110m in April with GSR, Norwest and Tenaya being joined by private equity firm Milestone Partners and Reinet Fund, an investment fund which was once part of the Switzerland-based luxury goods company Richemont SA.

Lashou operates a discounted group buying familiar to many firms across the world, particularly in China where it is known as Tuángòu, and the model is similar to daily deal websites such as Groupon.

Net losses for Lashou in 2010 were RMB65m ($10.1m), arising from revenues of RMB10.5m ($1.6m). The figures for the six months up to June 2011 however, show Lashou losing $60.6m with revenues of $8.9m.

Lashou states in the filing that it is planning to invest the revenue from the IPO in establishing a call and operations centre, as well as marketing, research and development, and in enhancing its technology platform.

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