10 Updates

Latest China IPO In The US Shows Surge Of Dragon Power

May 17 2014, 8:03am CDT | by

Venture capital and angel investors in China’s online cosmetics retailer Jumei, which went public May 16 on the NYSE, scored huge returns from small investments made in the startup founded just four...

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10 weeks ago

Latest China IPO In The US Shows Surge Of Dragon Power

May 17 2014, 8:03am CDT | by

Venture capital and angel investors in China’s online cosmetics retailer Jumei, which went public May 16 on the NYSE, scored huge returns from small investments made in the startup founded just four years ago by Stanford MBA grad Leo Ou Chen, now China’s newest billionaire. The IPO again showcases the billions can be made in a short period of time in China’s tech race both by entrepreneurs and their venture backers as China tech IPOs in the U.S. add up this year.

Returns are in the high “hundreds” range from a $6.5 million Series A investment in 2011 by Sequoia Capital China, K2 Capital and Success Origin, a fund by angel investor Xu Xiaoping. Xu’s returns are in the “thousands” range from an initial bet he made on Jumei– the largest win yet for Xu, who has backed several Chinese tech startups since scoring his own startup success with NYSE listing in 2006 of New Oriental Education & Technology Group. Sequoia and K2 owned 18.7 percent and 10.3 percent of Jumei respectively while Xu held 8.8 percent.

None of the VC investors sold in the Jumei IPO, which raised $245 million and saw shares trade up nearly 29 percent at their market debut and close at a near 10 percent gain. In the recent market volatility, the IPO was downsized from an initial $400 million.

The public market trading debut of this latest venture-backed China startup – the fifth this year in the U.S. — bodes well for a series of Chinese tech companies preparing to list in New York.  Job-hunting website Zhaopin filed last week for a $100 million IPO, and others in the pipeline include retailing website JD.com, mobile gaming company Chukong, and the one getting all the buzz, e-commerce conglomerate Alibaba.

Jumei shows the dragon power for startups with a well-formed strategy and team who can quickly capitalize on the commerce boom in China. Formed in 2010, Jumei claims to be the top online retailer of beauty products in China with a market share of 22 percent. Its revenues doubled in 2013 to $483 million and the startup has been profitable since 2012. In an indication of the power of mobile commerce in China, nearly half of Jumei’s merchandise volume was generated through its mobile application.

The story of western-educated young Chinese heading east to strike it rich continues to be a strong theme. Stanford grads have played a leading role in this unfolding story.

Founder Chen, 30, who has a 40.7 percent stake in Jumei, is a 2009 MBA graduate of Stanford, and its youngest China CEO. Jumei’s CFO Mona Meng Gao, 33, is also a 2009 MBA Stanford grad, class of 2009.

 
Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat w ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was bro ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk Seri Hishammuddin ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern states last mo ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 million in compensati ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Seri Mus ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocation of RM20 mi ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramada ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

8 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara D ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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