From Mogujie (NYSE: MOGU) to Ruhan (NASDAQ: RUHN) to Yunji (NASDAQ: YJ), a series of second-tier (in terms of size at least) Chinese e-commerce companies has filed with SEC and raised $66.5 million, $125 million, $121 million respectively (excluding any over-allotment option).
The interests were stirred by (at least) the capital market success of Pinduoduo.
In its IPO, Pinduoduo was valued at $23.8 billion including all outstanding share options, compared with a valuation of $15 billion following a funding round in April, 2018. (Reuters)
Following the IPO in July last year, Pinduoduo raised another $1,375 million in February at $25 per ADS (IPO priced at $19 for ~$1.6 billion).
However, it seems that only Pinduoduo could maintain a high valuation.
Partially due to a bad timing, Mogu, valued at $3 billion in 2016 and seeking a valuation of $4 billion in early 2018, reduced its target and was priced at the lower end for $1.3 billion. The previous valuation was derived from a merger tho.
Mogu Inc. ended its New York debut at the same price as its initial public offering $14, after dipping as much as 15% during the day. [Caixing]
As of May 17, 2019, Mogu closed at $5.4 per ADS, down more than 61% from the IPO price of $14.
Ruhan, or Ruhhn, slipped 37% below its IPO price on the first day of trading following a $125 million NASDAQ offering. [AVCJ]
As of May 17, 2019, it closed at $4.25 per ADS, down more than 66% from the IPO price of $12.5.
Yunji, debuted this month, has maintained $0.01 above its IPO price of $11 as of May 17, 2019. Yunji’s valuation is more supported by its revenue (EV/revenue multiple is close to 1).
And a roundup of multiples at IPO, using an exchange ratio of 6.8
| EV/GMV | EV/Revenue | |
| PDD | 0.28 | 10.19 |
| MOGU | 0.43 | 7.06 |
| RUHN | 2.34 | 5.72 |
| YJ | 0.56 | 0.98 |