Xiaohongshu to file for Hong Kong IPO at $31 billion valuation

Xiaohongshu, valued at $31 billion in secondary trades, plans to confidentially file for a Hong Kong IPO by end of June, Bloomberg reported, citing sources.

The social commerce platform, which operates a popular lifestyle and shopping app in China, is working with advisers on the potential listing, though details including timing, size and valuation have yet to be finalized, the people said. The company has told shareholders it expects 2025 profit to reach about $3 billion.

In its latest funding round in 2024, Xiaohongshu was valued at approximately $17 billion. Its valuation surged to $31 billion in secondary market transactions in September last year. The profit expectation of $3 billion would give the company a price-to-earnings multiple of roughly 10 times at the secondary market valuation, a level that could attract value-oriented investors if the IPO is priced at a discount.

Tech companies including MINIMAX-W (00100.HK) and BIREN TECH (06082.HK) have received a warm reception from investors when listing in Hong Kong this year, the report noted. Investors have urged Xiaohongshu that now would be the optimal timing for a public listing, as the Hong Kong market shows renewed appetite for new-economy stocks after a prolonged downturn in IPO activity.

The confidential filing allows Xiaohongshu to keep financial details private while it prepares for a formal launch. A successful listing would rank among the largest Hong Kong IPOs in recent years, testing whether the market can absorb a company with a multi-billion dollar valuation. Investors will watch for the company's public filing, expected in the coming months, for details on offer price, deal size and cornerstone investor commitments.

This article is for informational purposes only and does not constitute investment advice.