Money

Redbaby, Uni-Power to go public in 2011

(Agencies)
Updated: 2010-12-09 15:56

Redbaby, China's biggest online retailer for baby products, and Uni-Power, a Chinese financial guarantee company, are expected to go public in 2011, Reuters reported, citing US venture capital investor New Enterprise Associates (NEA).

Redbaby, which sells baby items as well as other household goods will seek an initial public offering (IPO) in the United States, NEA's managing director Jiang Xiaodong said in Shanghai. Jiang did not identify Uni-Power's listing destination or the companies' fundraising targets.

Global venture capitalists, betting on Chinese firms, hope that an IPO would boost the value of their holdings and generate handsome profits when they exit.

Related readings:  Chinese tech companies soar in US debut  Youku's NYSE listing closes well above IPO price  Dangdang bides time before e-book plunge  Asian companies lead IPOs in US

Underscoring strong demand for Chinese stocks, online video company Youku.com Inc and online retailer China Dangdang Inc soared in their US debuts on Wednesday.

NEA, which manages more than $11 billion globally and has invested in 650 start-ups, regards China and India as two main areas of investment, each accounting for about 20 percent of total investment, Jiang said.

In China, NEA has invested nearly $300 million in more than 20 companies, and has exited from firms including chip-makers Semiconductor Manufacturing International Corp, Spreadtrum Communications Inc and Actions Semiconductor Co.

Jiang expects two to three of its portfolio companies in China will be listed in the next 12 months.