With US out, Little Red Book eyes US$500m HK IPO

Chinese startup Xiaohongshu, or “Little Red Book,” is weighing a Hong Kong initial public offering to raise at least US$500 million (HK$3.9 billion), after putting its US listing plans on hold.

The company, which calls itself a lifestyle content platform, is working with advisers and could file an application for a Hong Kong IPO as soon as this year, Bloomberg reported, quoting people familiar with the matter.

A listing could even raise as much as $1 billion, depending on the market, the people said.

Deliberations are still ongoing and details such as fundraising size and timing could change, the people added. A representative for Xiaohongshu said the company maintains regular communication with stakeholders, but that they do not have any specific IPO plans at the moment.

Backed by Tencent (0700) and Alibaba (9988), Xiaohongshu is one of several companies that have been forced to revisit their US listing plans after China proposed new rules for firms going public overseas.

Xiaohongshu was seeking a valuation of about US$6 billion in a funding round last year, Bloomberg News has reported.

In other news, Clover Biopharmaceuticals has won the green light to go public to raise US$300 million.

The clinical-stage biotech company develops novel vaccines and biologic therapeutic candidates for infectious diseases as well as cancer and autoimmune diseases, the prospectus said. The indications for its products in each therapeutic area are Covid-19, malignant ascites and ankylosing spondylitis.

Property manager Beijing Capital Jiaye Property Services, under Beijing Urban Construction Group, is poised to go public as well. It has undertaken property management and related services for China’s National Stadium, also know as Bird’s Nest, and offices and buildings for numerous government agencies and conglomerates controlled by the State-owned Assets Supervision and Administration Commission of the People’s Government of Beijing Municipality.

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