Categorized | IPO

Status of Vancl IPO


The Vancl IPO Has Been Delayed

Vancl IPOThe Vancl IPO was expected to be a significant Chinese company Initial Public Offering (IPO) in 2011 that was anticipated by investors looking to buy into the Chinese online apparel retailer.  However, Vancl announced in December 2011 that the Vancl IPO will not occur until 2012.

It appears that the Vancl IPO was delayed because investors that own the private Vancl stock disagreed about the timing of the Vancl IPO.  One camp of Vancl investors believed Vancl should go ahead with the Vancl IPO as quickly as possible to take advantage of the interest in Chinese IPOs.  The other camp of Vancl investors wanted to delay the Vancl IPO until after Chinese Lunar New Year in 2012, in hopes that better market conditions in 2012 would bring a better valuation for the Vancl IPO.  Those in favor of delaying the Vancl IPO prevailed.  Investors looking to buy into the Vancl IPO should be on the lookout for a Vancl IPO listing after the Chinese Lunar New Year.

Details Regarding The Vancl IPO

Vancl introduced the Vancl.com clothing retail website in October 2007, which focuses on selling fashionable clothing for men and women, shoes, and apparel accessories.  Chen Nian, Vancl ‘s founder and CEO, disclosed in March 2011 that the company’s advertising revenue is expected to grow to 1 billion yuan in 2011, which is $157 million dollars; a five-fold increase over the prior year’s revenues.

Given Vancl ‘s high growth rate and the desire of some investors to diversify their holdings of Chinese IPOs away from the high technology Chinese companies that dominate the Chinese IPO market and into Chinese consumer goods companies, it is easy to understand the great interest that the Vancl IPO is generating in the investment community. 

The Vancl IPO is expected to raise between $1.0 to $1.5 Billion dollars for the company when it occurs in 2012.  While it is not entirely clear what Vancl plans to do with the money raised from the Vancl IPO, they could use it to either pay off debts that the company has incurred during their initial years in business or to expand their business into other markets.

In a sign that the Vancl IPO is a high profile Chinese IPO deal, it appears that Vancl has hired top tier investment banks to manage their IPO, including: Goldman Sachs Group Inc., Citigroup Inc., Morgan Stanley, Credit Suisse Group, and China International Capital Corp.

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