AiHuiShou, JD-backed Marketplace for Used Phones, Seeks NYSE IPO

The Chinese unicorn reportedly seeks to raise up to $1 billion.
CapitalWatch StaffMay 31,2021,18:52

AiHuiShou International Co. Ltd., the largest online retailer of second-hand mobile devices in China, has applied for an initial public offering in New York.

Based in Shanghai, AiHuiShou operates under the ATRenew brand, offering recycled consumer electronics and related services such as trade-in and inspection. The company is backed by one of China’s top e-commerce players, Inc. (Nasdaq: JD; HKEX: 9618).

After starting as a used phone retailer in 2011, AHS has grown to integrate Paijitang Marketplace for merchants and, in 2019, acquired used goods marketplace Paipai from JD Group. Now, AHS operates a C2B + B2B + B2C closed-loop value chain, as it said in its filing with the U.S. SEC. In addition to online sales, the company operates 755 stores throughout China.

Last year, AHS held a market share of 8.7% in terms of GMV for the number of devices transacted, according to China Insights Industry Consultancy cited in the prospectus. Total GMV transacted on the platform reached 22.8 billion yuan in the 12 months through March, representing year-over-year growth of 66%.

In 2020, AHS booked revenues of $741.5 million, at an increase of 24% year-over-year, on net loss of $71.8 million. In the first quarter of 2021, revenues reached $231.1 million and losses were $14.5 million, according to the filing.

As of the date of the prospectus, JD Group held 34.7% equity in AHS. Among other backers are Morningside Venture Capital, IFC, Tiger Global Management, GenBridge Capital, and Tiantu Capital. AHS is said to have raised seven rounds of financing

AHS said it plans to use the proceeds from its IPO in New York to boost its technology capabilities, diversify service offerings, expand its store network, and develop new sales channels, among other purposes.

Underwriters are Goldman Sachs (Asia) LLC, BofA Securities Inc., China Renaissance Securities (Hong Kong) Ltd., Guotai Junan Securities (Hong Kong) Ltd., CLSA Ltd., and Tiger Brokers.

The prospectus lists $100 million as the placeholder target for the offering. The exact terms are yet to be determined, but according to an April report by EqualOcean, AHS hopes to raise as much as $1 billion in the deal.

AiHuiShou seeks to become traded on the New York Stock Exchange under the symbol “RERE.”

Topics:JD, AiHuiShou, RERE, IPO, China