Yatsen Holding Ltd. has set the terms for its initial public offering worth up to $616.9 million and prepares to lift off on Wall Street on Thursday.
The Guangzhou-based retailer of beauty products has set the price range for its IPO at $8.50 to $10.50 per American depositary share. It seeks to sell 58.75 million ADSs, plus an additional 8.8 million as an option to cover over-allotments, if any.
Yatsen said in its prospectus, updated on Friday, that a number of existing and new institutional investors have indicated interest in acquiring a cumulative $300 million in the IPO. These are affiliates of Hillhouse Capital, Tiger Global Investments, a Tencent affiliate Mount McKinley Investment, and Yunfeng Financial Group.
Securers on the IPO are Goldman Sachs (Asia) L.L.C., Morgan Stanley & Co. LLC, China International Capital Corp. Hong Kong Securities Ltd., China Renaissance Securities (Hong Kong), Futu Inc., and Tiger Brokers (NZ) Ltd.
For 2019, the cosmetics retailer booked $446.4 million in revenue – a whopping 377% year-over-year growth. It also turned profitable in 2019, recording $11.1 million in income. For the nine months through September 2020, Yatsen reported $481.9 million in revenue and had net loss of $170.4 million, according to the filing with the U.S. Securities and Exchange Commission.
Yatsen sells via offline stores, its online platform, other online retail channels, and social networks. As of September, it operated 200 stores across 90 cities in China compared with 40 stores at the same time last year.
The proceeds from the IPO will be used for business operations and corporate purposes, strategic investments, data analytics technology, product development and formulation R&D, and offline experience store network expansion, the company said.
Yatsen has publicly filed for an IPO in New York just two weeks earlier. The company, one of China’s largest cosmetics retailers, was rushed to the market in a sign of strong interest among U.S. investors for Chinese stocks.
Yatsen has reserved the ticker symbol “YSG” for trading on the New York Stock Exchange. The company is scheduled to debut on Nov. 19.