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By Kane Wu and Yantoultra Ngui
HONG KONG, June 16 (Reuters) - Chinese societal media level Xiaohongshu has tapped banks including Goldman Sachs and CICC to enactment connected a potential Hong Kong archetypal nationalist offering, 2 sources with cognition of the substance said.
The imaginable IPO size and valuation are not instantly known, but different 2 abstracted sources said that Xiaohongshu was valued successful private secondary trades astatine arsenic overmuch arsenic $50 cardinal towards the extremity of past year.
The company, besides known arsenic RedNote, could database arsenic aboriginal arsenic the 2nd fractional of this year, the 2 abstracted sources said. All the sources declined to beryllium named arsenic they were not authorised to talk to the media.
Shanghai-based Xiaohongshu did not respond to requests seeking comment. Goldman declined to comment, portion CICC did not instantly respond to a petition seeking comment.
Bloomberg archetypal reported the firm's IPO program connected Monday, and said the institution was preparing to confidentially record for the Hong Kong listing by the extremity of June.
Founded successful 2013, Xiaohongshu, whose sanction translates to "little reddish book", is akin to Meta's Instagram successful that it allows users to curate photos, videos and substance documenting their lives.
In caller years it has also go a de-facto hunt motor for young radical looking for question tips, manner hacks and edifice recommendations, with implicit 400 cardinal monthly progressive users since 2025.
Xiaohongshu's projected nett for 2026 could scope $3 billion, 1 of the sources said.
The startup successful 2021 had confidentially filed for a U.S. IPO, but the process failed to materialise aft Chinese regulators voiced concerns astir the listing venue, said one of the sources and a 5th idiosyncratic with knowledge of the plans.
China tightened its grip implicit backstage media and net businesses successful 2021 amid China-U.S. tensions, and strengthened supervision of offshore listed companies.
Xiaohongshu's Hong Kong IPO program still needs a greenish airy from the China Securities Regulatory Commission, which could instrumentality months to marque a decision, sources said.
The firm's valuation, which reached $20 cardinal successful a backing circular successful 2021, dropped to a reported $17 cardinal successful 2024.
Investors nevertheless warmed to the institution again successful 2025 aft TikTok users successful the U.S. flooded its pages, driven by a looming U.S. prohibition connected TikTok successful aboriginal January.
(Reporting by Kane Wu successful Hong Kong and Yantoultra Ngui successful Singapore; Editing by Chizu Nomiyama )
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