Dangdang.com plans to raise US$200 mln
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Dangdang.com, China's largest online retailer, plans to raise US$200 million in funds by the end of the year, the company's co-president Li Guoqing told China Business News on Sunday.
Dangdang hasn't yet decided on whether to conduct an initial public offering or seek private investment to complete the financing plan, said Li.
A source from the investment banking industry told the newspaper that Dangdang is expected to launch an IPO in the United States as early as the end of this year. The company has hired Morgan Stanley and Credit Suisse to be the underwriters of its long-awaited IPO, the source said.
According to Li, funds raised will be invested in logistics and building technical platforms in an effort to better support the online retailer's expansion in the general merchandise business. Last year, Dangdang's book sales rose nearly 60 percent, while merchandise sales rose as much as 230 percent. The company expects its merchandise sales to account for half of its total sales in the next three years.
Dangdang's last fundraising plan was completed in 2005, bringing in US$27 million.
China's business press carried the story above on Monday. China.org.cn has not checked the stories and does not vouch for their accuracy.
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