- General
- November 19, 2020
- 3 minutes read
Yatsen Bags $617M From IPO
Yatsen, the Chinese cosmetics company that recently filed for a US public offering, has now raised $619.6 million in its…
Yatsen, the Chinese cosmetics company that recently filed for a US public offering, has now raised $619.6 million in its public offering on the New York Stock Exchange by selling 58.75 million American depositary shares for $10.50 each.
The company’s public offering was underwritten by major investment banks including Morgan Stanley, Goldman Sachs, and the China International Capital Corporation Hong Kong Securities Limited.
Yatsen is a cosmetics company that was founded just four years ago, named after the Sun Yat-sen University in China which is the alma-mater of the company’s founders. Yatsen owns the fast-rising cosmetics brand Perfect Diary along with two other complementary brands, Little Ondine and Abby’s Choice.
Yatsen pulled in $446 million in revenue in 2019 and reported a net income of $11 million in the same year. This year, however, the company posted a high net loss of $170 million in the nine months leading to September on $482 million in revenue. The losses significantly originate from a coronavirus pandemic that widely shuttered Yatsen’s physical stores in China in its early months.
Yatsen will use the proceeds from its public offering to fund its expansion.
As a private company and before its public offering, Yatsen is known to have raised over $100 million in funding. Its backers include Tiger Global and Hillhouse Capital Group.
