SoYoung, the China-based operator of an online booking service for cosmetic surgery, filed for a $150m initial public offering in the US yesterday that would enable internet group Tencent to exit.
Founded in 2013, SoYoung operates an online platform where users can research and book cosmetic procedures, leave reviews of services and upload photographs of the results. Its content is viewed about 240 million times each month, directly and through social media channels.
The company’s net loss increased more than threefold to approximately $8m in 2018, but it more than doubled revenue to about $90m in the process. The proceeds will support research and development, marketing, the strengthening of its content and an expansion into adjacent areas.
The IPO will follow at least $229m in venture funding, $50m of which was invested by Tencent in 2016 at a reported valuation of about $460m, following series A funding from Matrix Partners China in 2014 and $20m from Trustbridge Partners the following year.
Apax Digital and CDH Investments co-led SoYoung’s $60m series D round in January 2018, investing alongside Matrix Partners China and Trustbridge Partners, before Orchid Asia led a $29m series D2 round in March 2018 and a $70m series E that valued it at more than $1bn six months later.
The filing comes after reports in February this year that the company had confidentially filed for an offering with a $300m target. Xing Jin, SoYoung’s co-founder and CEO, owns 12 million class A shares that represent the entirety of the company’s class A shareholding.
SoYoung’s notable shareholders also include investment vehicle ATCG Holding, which owns 28.8% of its class B shares, Matrix Partners China (21.7%), Trustbridge Partners (17.5%), Apax Digital (10.8%) and Orchid Asia (9.3%).
Deutsche Bank Securities and China International Capital Corporation are the underwriters for the offering, which is set to take place on the Nasdaq Global Market.
