The Home Business of 58.com Pursues U.S. IPO, Eyes $2 Billion Valuation
China’s largest online marketplace for classifieds, 58.com, is seeking an IPO for its subsidiary after it completes a private financing round.
58 Home, an online service arm of 58.com Inc. (NYSE: WUBA), is reportedly pursuing an initial public offering in the United States that it hopes will value the company at $2 billion.
The Beijing-based equivalent of Crunchbase, 58.com is closing a pre-IPO financing round of its subsidiary that is expected to leave it with a valuation of more than $1 billion, upon which it will seek to list it in New York, as reported by Bloomberg this week.
Known to the Chinese as 58 Daojia, the online services platform provides information on household services including cleaning, moving, babysitting and beauty care. It operates in approximately 30 cities in China and is backed by Chinese conglomerate Tencent Holdings Ltd. (HKEX: 0700).
Another tech giant, Alibaba Holding Group Ltd. (NYSE: BABA), which operates a rival service, has also supported 58 Home as a participant in its $300 million Series A equity funding round, Bloomberg reported. Financial service provider Ping An Group also participated in the round.
By midday on Friday, shares in 58.com rose 32 cents to $67.91 apiece.