Xiaohongshu plans for Hong Kong IPO by year-end, targets US$70b valuation, WSJ reports

Chinese social media platform Xiaohongshu is preparing for an initial public offering in Hong Kong as early as the end of this year, targeting a valuation of more than US$70 billion (HK$548.59 billion), the Wall Street Journal reported on Wednesday. 

The details for the proposed IPO are still in discussion with investors and advisors, the report said, adding that Goldman Sachs and CICC are advisors for the deal.

The Instagram-like platform could record a net profit of more than US$3 billon for the year, higher than that of US$2 billion from the prior year, according to the report.

Investors of Xiaohongshu include Chinese tech giants Tencent (0700) and Alibaba (9988), while the lifestyle and video-sharing platform also secured backers like HSG, Hillhouse Investment, and GSR Ventures.

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