Lashou Cancels IPO Plan

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Lashou, the Chinese daily deal site yesterday filed with SEC to cancel its IPO plan.The company filed for an up to US$ 100 million IPO on October 29 last year, which was later on delayed due to auditing problem and weary market.

Founded in 2009, Lashou has raised more than US$ 166 million in three rounds of financing from investors including GSR Ventures, Rebate Network, Norwest Venture Partners, Milestone Capital, Reinet Fund SCA FIS and so on.

According to its SEC filings, Lashou generated US$ 1.62 million in revenue in 2010, while it’s net loss over the same period hit more than 10 million.

If ask Groupon, the inspiration of Lashou, it’ll probably tell you that even made it to NASDAQ  isn’t as good as it supposed to be now. The company’s stock price has been nearly halved to about 10.93 dollar in the latest trading day.

Groupon’s lifeless stock makes it harder for its Chinese counterparts to gain confidence among investors.

55Tuan, another Chinese group buying service also put its IPO planning on hold. The company scheduled to go public last year due to credibility crisis plagued market and concerns over US-listed Chinese companies‘ accounting problem at that time.

Meituan, at the same time, might be the most silent one among the IPO fancy. The company pulled in nearly RMB 380 million sales in last month, claiming to turn profitable by year-end.