Babytree, a China-based social parenting media and e-commerce company backed by corporates Fosun, Tal Education and Alibaba, aims to raise $1bn in its initial public offering, Reuters reported today.
The company plans to raise between $800m and $1bn at a valuation of $3bn to $5bn from a Hong Kong IPO, and will seek approval from the stock exchange in September 2018 with a view to floating the following month, according to people close to the transaction.
Babytree operates an online community focused on parenting and childcare, as well as an e-commerce platform and an education and video recording platform for parents called WeTime. It filed for the offering in June this year but has not set a price for the IPO.
The offering follows a RMB911m ($132m) loss in 2017 from full-year revenue of RMB730m ($106m).
Fosun, the diversified conglomerate that led a $450m round for Babytree in 2016 that included education services firm Tal Education Group, Chenshan Capital, China Merchants Wealth and Matrix Partners, is its largest investor, with a 24.8% stake.
Tal Education, which had also invested $23.5m in Babytree in 2014, holds a 10.2% share of the company while e-commerce firm Alibaba owns 9.9% following an investment in June this year reportedly sized at about $220m.
Cosmetics e-commerce company Jumei provided $120m in convertible note financing for Babytree in 2015, and owned a 7.3% stake until June 2018 when it sold a 4% share to an undisclosed investor that may have been Alibaba.