VANCL, the Chinese online apparel retailer which was supposed to get started its IPO process was said to delay its offering due to investors’ disagreements on the timing as some of the Beijing-based company’s investors thought Vancl should get listed ASAP and the opposition believed holding on the offering till next year after Chinese Lunar New Year to avoid the volatile market for a better valuation would be a better choice.
After seven rounds of funding, venture capitals who made it to Vancl’s investor lists includes IDG, Ceyuan Capital, Leijun, Qiming Venture Partners, Tiger Fund, SAIF and Temasek Holdings. The company was planning to raise as much as US$ 1.5 billion (RMB 1 billion) when news first broke its IPO plan.
And Vancl’s vice-president, Wu Sheng has just left the company and was said to join 360buy.
As the market volatilization goes on, public market hasn’t shown a welcome sign for Chinese companies and a bunch of companies deciding to put off their IPOs until things getting better. Vancl is just one of them.
What’s more, awful market is compounded by a string of reports by short sellers such as Muddy Waters (on Focus Media) and Citron (on Qihoo 360).
Lashou, the Chinese daily deals site reportedly has cancelled its IPO roadshow to clarify accounting issues with the SEC.