Beike Zhaofang, the online-focused spinoff of China-based real estate brokerage Lianjia, is mulling the launch of an initial public offering set to be at least $1bn in size, Bloomberg reported today.
The company is yet to decide on a market for the flotation but is working with an adviser and could hypothetically go public as soon as 2020, according to people familiar with the matter.
Also known as Ke.com, Beike was launched by Lianjia in 2017 to concentrate on the online market. It utilises 3D modelling technology to enhance the online viewing experience and is looking to build a 200 million-strong customer base spanning some 300 Chinese cities.
Internet group Tencent invested $800m to lead a series D round for the company in July this year that was reportedly sized at nearly $1.2bn, valuing it at $9.5bn.
Real estate developer Country Garden committed $50m to the round, which included Gaw Capital Partners, Gaochun Capital, Source Code Capital, New Horizon Capital, Strait Capital Investment Group and Huaxing Capital, a subsidiary of China Renaissance, as well as unnamed additional backers.
Telecommunications and internet conglomerate SoftBank’s Vision Fund has also invested in the company, according to Japanese media reports earlier this year.
Another Lianjia spinoff, property rental services provider Ziroom, was valued at $4.5bn as of June this year, according to Chinese media reports that stated it was in the process of raising $500m in series B funding.
