360° Coverage : Vipshop's Latest Surge Adds To Its Standing As Top-...

2 Updates
Vipshop's Latest Surge Adds To Its Standing As Top-Performing Chinese IPO In The U.S.
Photo Credit: Forbes Business

Vipshop's Latest Surge Adds To Its Standing As Top-Performing Chinese IPO In The U.S.

Mar 5 2014, 9:18am CST | by

The 32% rise yesterday in the share price of online discount retailer Vipshop Holding added anew to the company’s standing as best-performing Chinese IPO in the U.S. in the past two years. Vipshop’s...

Filed under: news

 
 
 

27 weeks ago

Vipshop's Latest Surge Adds To Its Standing As Top-Performing Chinese IPO In The U.S.

Mar 5 2014, 9:18am CST | by

The 32% rise yesterday in the share price of online discount retailer Vipshop Holding added anew to the company’s standing as best-performing Chinese IPO in the U.S. in the past two years.

Vipshop’s huge 30 fold rise from $5.5 per share at the time of its IPO in March 2012 to $169 at closing yesterday morning was four times as big as social site YY, which has returned 670%. Vipshop has had the highest return among all the 11 Chinese IPOs in the U.S. from 2012 to 2013, based on figures presented by Andy Hall, managing director for new listings at the Nasdaq, in a talk organized by the China-U.S. Chamber of Commerce last week in New York.

Shares of New York-traded Vipshop climbed yesterday after the company unexpectedly strong fourth-quarter results. Sales rose 117% from a year ago amid a doubling of active customers. Its gross margin has steadily improved from 21% at the time of its IPO to 24.5% in the fourth quarter. In comparison, Dangdang, another well-known Chinese e-commerce had a margin of 17.6% in the third quarter of 2013.

When I first wrote about Vipshop in November, only one of the co-founders, Eric Shen, met the Forbes China Rich List cut-off line of $600 million fortune. But the recent jump in stock price has also lifted co-founder Arthur Hong into the ranks of the world’s richest people.  China has a record 152 members of the new Forbes Billionaires List published this week. Among them are Zhou Hongyi, co-founder of Beijing-based Internet security and search company Qihoo 360 Technology, and Mo Tianquan, chairman of online real estate information provider Soufun.

The five-year-old company has largely relied on organic growth driven by online flash sale of mid to high-end discounted clothing, cosmetics and accessories, in what Deutsche Bank calls an “acutely under-penetrated and still-underestimated China discount market.” In its first acquisition, Vipshop last month bought a 75% stake in Chinese cosmetics online retailer Lefeng for $132 million. It also purchased 23% of Lefeng’s parent company for $56 million. The partnership is expected to generate at least $146 million revenue from Lefeng products in the coming year, according to a press release.

Follow me on Twitter @Hengshao90s.

Source: Forbes Business

 
Update
2

2 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new compan ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

2 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the do ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

President flies out of Vietnam
Ho Chin Minh City, Sep 17 (IANS) President Pranab Mukherjee Wednesday wrapped up his four-day state visit to Vietnam and flew back to India.
 
 
Artwork an extension of the creator
New York, Sep 17 (IANS) Know why we do not view a Picasso sculpture or Leonardo da Vinci's portrait in the same way we look at a bed no matter how fancy the bed is?
 
 
Be careful with wearable lifestyle monitoring devices
New York, Sep 17 (IANS) If you plan to buy a wearable device fitted with health apps to improve your well-being, do not go by its flashy advertisements but check if it matches your requirements.
 
 
UN chief welcomes US assistance to fight Ebola
United Nations, Sep 17 (IANS) UN Secretary-General Ban Ki-moon welcomed the US support against the Ebola outbreak in West Africa and called for "bold and courageous" international efforts to fight the epidemic.
 
 
 

Latest from the Network

Mild earthquake hits New Zealand
Wellington, Sep 17 (IANS) An earthquake measuring 3.9 on the Richter scale jolted New Zealand's Wanganui region Wednesday, a media report said. The tremor hit the region at 7.28 am, New Zealand Herald reported citing...
Read more on Politics Balla
 
Beyoncé and Jay Z had 'commitment ceremony'
Beyoncé and Jay Z had a ''special commitment ceremony'' on her birthday. The couple - whose marriage has been dogged by speculation it is on the rocks in recent months - reportedly decided to ''wipe the slate clean''...
Read more on Celebrity Balla
 
Vatican car carrying drugs intercepted
Paris, Sep 17 (IANS/EFE) French police have confiscated cocaine and marijuana from a car with Vatican plates, after it entered the country from Spain, RTL radio reported. It said Tuesday police officers stopped the...
Read more on Politics Balla
 
Is Samsung ready with its first selfie phone?
London, Sep 17 (IANS) At a time when the world is going crazy over the selfie phenomena, Samsung is rumoured to have developed its first selfie-centric smartphone. The Galaxy Grand Prime reportedly has a 5MP front-...
Read more on Celebrity Balla
 
Shooting for next James Bond film starts in December
Los Angeles, Sep 17 (IANS/EFE) Shooting of the next James Bond film, the 24th instalment of the popular spy series, will begin Dec 6 at Pinewood Studios near London, Variety reported. Sam Mendes is back to direct...
Read more on Celebrity Balla
 
Meteorite that killed dinosaurs helped forests bloom
Washington, Sep 17 (IANS) A giant meteorite that wiped out dinosaurs along with evergreen flowering plants 66 million years ago gave rise to deciduous plants - plants that lose their leaves at some point during the...
Read more on Apple Balla
 
Eva Mendes and Ryan Gosling welcome a baby girl
Los Angeles, Sep 17 (IANS/EFE) Actors Eva Mendes and Ryan Gosling became first-time parents last week when the Latina gave birth to a baby girl, the US Weekly has reported. Mendes, 40, and Gosling, 33, have had a...
Read more on Celebrity Balla
 
Spain may prosecute citizens who join jihadi groups
Madrid, Sep 17 (IANS/EFE) The Spanish government is thinking about amending the criminal code to allow Spaniards who take part in foreign conflicts, especially those in which radical Islamic groups are involved, to be...
Read more on Politics Balla
 
Obama calls for gun control on anniversary of Navy Yard shooting
Washington, Sep 17 (IANS/EFE) US President Barack Obama renewed his call for "common-sense" gun control measures, one year after a shootout in a US Navy facility in Washington left 12 people dead. "One year ago,...
Read more on Politics Balla