China-based online travel service Tuniu, which counts Japan-based e-commerce company Rakuten among its shareholders, has filed for an initial public offering in the US that could raise up to $120m.
In 2007 Tuniu became one of the first firms to begin offering packaged tours online in China and has since sold more than three million holiday packages to Chinese customers. It most recently closed a $60m series D round in September 2013 from investors including Singapore’s sovereign wealth fund, Temasek, and venture capital firm DCM.
RS Empowerment, an investment vehicle owned by Rakuten, led Tuniu’s $50m series C round in April 2011 and now holds a 5.3% stake in the company. Tuniu’s largest shareholder is DCM, which led its series B round in 2010 and now holds a 23.5% stake. Other notable shareholders include Temasek (16.7%), China-based VC firm Gobi Partners (16.4%), which invested $3m in Tuniu’s series A round, and US-based VC firm Sequoia Capital (13.2%).
Tuniu plans to enhance its sales and marketing activities, product selection and technology with the proceeds. It cut its full-year net loss from RMB 107m ($17.7m) in 2012 to RMB 79.6m ($13.2m) last year, while increasing revenues from RMB 1.08bn ($177m) to RMB 1.89bn ($312.7m).
The filing indicates the frenzy among China-based companies to file for IPOs in the US. Alibaba’s planned $15bn flotation may be the largest, but other notable companies planning to go public in the upconing months include Sina Weibo, Chukong Technologies and Cheetah Mobile, while IT education services provider Tarena International raised $138m from its own IPO last week.
Morgan Stanley & Co. International, Credit Suisse Securities (USA) and China Renaissance Securities (Hong Kong) are acting as underwriters for the offering.