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Yunji IPO: What You Need To Know

Elizabeth Balboa

China’s Yunji will add one more product to its slate of offerings: itself. The online marketplace hits the U.S. exchanges this week to finance its continued growth.

The IPO

Yunji will issue 13.5 million shares on the Nasdaq under ticker YJ, according to the F-1 filing. Priced between $11 and $13, the offering represents 100 percent of outstanding shares.

Lead underwriters include Morgan Stanley, Credit Suisse, JPMorgan and Cicc.

The company qualifies as a foreign private issuer, which exempts management from certain SEC disclosure requirements.

The Company

Founded in 2015, the social e-commerce platform serves China’s massive consumer base with more than 6,600 products.

Yunji buyers expanded from 2.5 million in 2016 to 16.9 million in 2017 to 23.2 million in 2018. Over the same time, gross merchandise volume grew from RMB1.8 billion to RMB9.6 billion to RMB22.7 billion. Last year, 66.4 percent of GMV was attributable to the firm’s 7.4 million members, who pay to access a curated app and membership discounts.

China’s social e-commerce industry is expected to grow to RMB2.42 trillion ($352.3 billion) in 2022, according to China Insights Consultancy.

The Finances

In 2018, Yunji reported RMB13.02 billion in revenue leading to a net loss of RMB56.33 million. The previous year, it earned RMB6.44 billion for a net loss of RMB105.72 million.

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