Chinese E-commerce Company IPO Lights It Up

Online shopping
Source: Thinkstock
China-based online retailer LightInTheBox Holding Co. Ltd. (NYSE: LITB) held its initial public offering (IPO) this morning, and the company’s shares have popped. LightInTheBox offered 19.09 million shares priced at $9.50 each, the middle of the expected range. The company expected net proceeds of approximately $79 million. One ADS is equal to two ordinary shares.

The underwriters, Credit Suisse, Stifel Nicolaus and Oppenheimer, have an option on an additional 1.05 million ADS.

Though based in China, the company sells its goods globally on websites produced in 17 languages. LightInTheBox claims to reach more than 80% of global Internet users. Net revenues have risen from $6.3 million in 2008 to $200 million in 2012 and $73.3 million in the first quarter of this year.

Following the IPO the company will have 98.3 million shares outstanding, if the underwriters exercise their overallotment option. LightInTheBox plans to use the proceeds to finance its business operation, including fulfillment and technology infrastructure, product offerings, paying down debt and customer acquisition and brand building.

Based on today’s IPO, the company’s market value is around $465 million.

Shares are trading up 26.7% at $12.04 shortly before noon today.

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