Beijing Jingdong Century Trading Co., runs an online shopping website called 360buy.com that functions like Amazon.com– there are a variety goods, and they’re sold directly to the consumer.
According to the WSJ, the company is hoping to raise between $4 and $5 billion from their IPO in the first half of 2012. Obviously, this would smoke Google’s $1.9 billion IPO, the reigning internet company champion. Bankers have been flying to Beijing since the beginning of the week to compete for this deal.
Analysts expect Beijing’s online shopping market to grow by five times in the next three years, by 650 billion yuan ($100 billion). Taobao, an auction site owned by unlisted Chinese company, Alibaba Group, 40% of which is owned by Yahoo, holds 70% of the market share. An estimated $62.5 billion in sales flowed through Taobao last year.
Jingdong isn’t profitable yet, but Chinese consumers are hungry to do more than just compare prices on the internet. The company also also handles shipping, which Taobao usually doesn’t do.
A company spokesman said that revenue grew to $1.6 billion last year, up from nearly $626 million in 2009.
Hope Alibaba’s ready for a little healthy competition.
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