Clothing Brand Mcglaughlin Listed In The US &Nbsp; Sequoia Capital Or Winner.

Yesterday evening (October 26th) was informed that Mcglaughlin officially approved the listing, in the

"Mcglaughlin's going to the US NASDAQ will bring China to a certain extent.

Planned financing $129 million

Mcglaughlin is an enterprise specializing in the sale of clothing and accessories to young women in cities.

At present, Mcglaughlin's annual sales volume is more than 1 billion yuan, and its revenue is mainly divided into three main channels, namely, online shopping, mail order and retail store sales. Currently, it ranks second in China's clothing B2C e-commerce enterprises, only after fans.

The prospectus data disclosed by Mcglaughlin show that Mcglaughlin's net profit in 2007, 2008 and 2009 reached 4 million 112 thousand US dollars, 3 million 552 thousand US dollars and US $7 million 212 thousand respectively in three years.

As of the first half of this year, Mcglaughlin's M18.com website had about 2 million 100 thousand active users, earning a net income of $108 million, an increase of 41.6% over the same period last year, and net profit of $2 million 530 thousand, down 37.7% from the same period last year.

Mcglaughlin's initial public offering will sell 11 million 740 thousand US depositary receipts at a price of $11 per share, equivalent to 7 common shares per American Depository Receipt.

Mcglaughlin raised about $129 million.

The company's previous offering price range was between $8 and $10.

Mcglaughlin said that the $15 million raised will be used to enhance the electronic commerce infrastructure, and $29 million 500 thousand will be used to build new logistics centers and warehouses, and $6 million 500 thousand for shop improvements. The remaining funds will be used for day-to-day operations of enterprises.

"From a macro perspective, Mcglaughlin is China's first B2C company to list in the US. This shows that China's B2C market has been recognized by the capital sector, and the future capital environment will be more mature."

Analysys International E-commerce analyst Chen Shoufeng said.

"The most direct impact of the listing on Mcglaughlin is that there is ample money to expand more business.

Now companies can think more about their profitability and the balance of their structure, that is, the company will make future strategies instead of venture capitalists to intervene in its strategy.

But this effect is not enough to make it grow rapidly in the short term, surpassing scale enterprises such as Dangdang and Jingdong.

Van guest is still in the outbreak stage, although it is not yet listed, but in the future sufficient capital conditions, its growth rate is not Mcglaughlin can surpass. "

Analysys International E-commerce analyst Chen Shoufeng said.

"Behind the scenes" Sequoia Capital or winner

After years of market development and consumer education, China's e-commerce B2C market is booming, and has gradually become one of the focus areas of capital concern such as venture capital.

According to the data of Qing Dynasty, there were 95 investment events in China's e-commerce B2C industry and related fields in the past 2006~2009 years, involving 44 enterprises and 604 million US dollars in investment.

As of the second quarter of 2010, 16 investment events have occurred in the B2C industry.

"B2C mode needs strong capital huge financing to support enterprises to improve service level, warehousing logistics and system construction.

The profit model of VC is to hope that enterprises will be listed, so as to achieve the purpose of cash.

Mcglaughlin actually needs capital support. In the future, when venture capitalists withdraw, Mcglaughlin may get more financing through the background of listed companies, which has advantages over other B2C enterprises. "

Chen Shoufeng said.

Data from the Qing Research Center show that since its establishment, Mcglaughlin has completed three rounds of financing, and has received about $122 million 270 thousand in financing.

Among them, Mcglaughlin's main investors include Vc firm Sequoia Capital.

In 2008, Sequoia capital invested nearly 80 million dollars to acquire Mcglaughlin, and Shen Napeng joined the Mcglaughlin board and served as chairman.

At the same time, it invested 45 million US dollars in 1996 to become a Mcglaughlin controlling shareholder.

Prospectus shows that before the listing, Sequoia Capital holds about 253 million common shares, accounting for 75.9% of the total share capital.

From the perspective of investment, most VCs do not consider the value of business models to users. They only consider the growth of this model in the Chinese market environment.

Venture capital hopes that these enterprises will take the lead in the market soon after they get the investment, and will finally be listed like Mcglaughlin and finally get the benefits.

The idea of enterprises is different from that of venture capitalists. Enterprises need capital, more considerations from the business mode, how to provide users with better services, and occupy the leading position of the market on this basis.

This is the conflict between most management and investors. "

Chen Shoufeng said.

To Mcglaughlin's listing, to some extent, Sequoia Capital is the "behind the scenes pushing hand" of Mcglaughlin IPO, and Shen Napeng has become a master of "turning gold into gold".

This year, Shen Napeng has led Gould software and rural base to the United States. Mcglaughlin, as the three company to invest in the US in the year of Shen Napeng and Sequoia China, is inseparable from Shen Napeng's capital operation.

In this regard, Shen Napeng publicly said, "I believe that the capital market can accept a listed company to have strict consideration, Mcglaughlin can be listed successfully, not only its profit. It began to go on the market at the beginning of this year, the business was carried out in accordance with a single step, without intentional adjustment, nor intended to be the first Chinese e-business enterprise to be listed in the United States, and the Sequoia Capital will support the growth of the enterprise as a long-term investor."