China’s largest online business-to-customer (B2C) website Jingdong Mall (360buy.com) is still in the process of appointing underwriters for its U.S. initial public offering and the company hasn’t officially begun its IPO, according to a source close to the matter.
“If Jingdong Mall files for IPO now, it won’t be approved until next year,” the source told the 21st Century Business Herald. “This is not a good time for a company to debut on the U.S. stock market, since the market is sluggish recently, so the newly listed company will either fail to raise [enough] money or will be undervalued by market”.
360buy is talking to “reputable” foreign investment banks, and may more appoint more than 1 to underwrite its IPO, the source said. According to earlier media reports, 360buy is looking to raise $4 billion-$5 billion through the IPO.