Chinese E-commerce Company IPO Lights It Up

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By Paul Ausick Updated Published
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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.

Contact [email protected] for any questions or corrections.

Photo of Paul Ausick
About the Author Paul Ausick →

Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

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