58.com, a Chinese local classified-ad website, plans to seek at least $100 million in an initial public offering in the U.S. this year, said people familiar with the matter.
The company is working with Credit Suisse Group AG and Morgan Stanley, said two of the people, who asked not to be named because the process is private. Beijing-based 58.com may also be working with additional banks, one person said.
58.com would become only the second mainland China-based company to complete a U.S. IPO this year and the fourth to do so since the end of 2011, data compiled by Bloomberg show. Slowing economic growth in Asia and increased concern among U.S. investors over accounting and auditing standards at Chinese companies stemmed the flow of offerings from that country, which peaked in 2010, when 41 such offerings in the U.S. raised $4.1 billion, the data show.
Most recently, Chinese companies completing U.S. IPOs have made money for investors. YY Inc. (YY), a Guangzhou-based social-networking site, raised $94.2 million last year including an over-allotment option, and has more than tripled in trading. LightInTheBox Holding Co. (LITB), an online retailer based in Beijing, raised $90.7 million in June including an over-allotment and had gained more than 75 percent in trading through yesterday.
Calls to 58.com offices seeking comment during business hours today weren’t returned. Spokesmen for Credit Suisse and Morgan Stanley declined to comment.
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