China Beauty Firm to Pick Goldman, Morgan Stanley for IPO

(Bloomberg) -- The Chinese company behind the fast-growing Perfect Diary cosmetics brand has picked Goldman Sachs Group Inc. and Morgan Stanley to prepare for a potential initial public offering, according to people familiar with the matter.

Guangzhou Yatsen E-Commerce Co., or Yatsen Global as it is known, aims to raise $400 million to $500 million in an offering, which could happen as soon as the end of this year, the people said. It has been considering Hong Kong among potential listing venues though no final decision has been made, said the people, asking not to be identified as the matter is private.

Yatsen raised about $100 million in its latest funding round earlier this year, valuing the firm at about $2 billion, the people said. Tiger Global Management, Hopu Investment Management, Hillhouse Capital and Hony Capital are among its backers, according to its website.

The founders started the cosmetic company in 2016, naming it after their alma mater which commemorates China’s first president Sun Yat-sen. The firm has developed over 700 beauty products and now has more than 25 million online followers. It plans to increase the number of Perfect Diary stores to more than 600 by 2022, up from 40 in 2019. In June, Yatsen launched its second brand, Abby’s Choice, featuring skincare, makeup and other products aimed at a female young adult demographic.

Preparations for the IPO are at an early stage and details including size and timing could change, the people said. Representatives for Goldman Sachs, Morgan Stanley and Yatsen Global declined to comment.

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With assistance from Bloomberg