Tencent-Backed Beike Considering $1 Billion IPO Next Year

(Bloomberg) -- Beike Zhaofang, a Chinese online property brokerage platform backed by Tencent Holdings Ltd., is considering an initial public offering that could raise at least $1 billion, people familiar with the matter said.

The company is working with an adviser for the potential share sale, said the people, who asked not to be identified as the discussions are private. The listing could take place as soon as in 2020, while the company hasn’t decided on the venue, the people said.

Beike’s potential share sale could come after the listing of Fangdd Network Group Ltd., a Chinese online real estate broker backed by FountainVest Partners, raised $78 million via a downsized U.S. IPO in November.

Beijing Homelink Real Estate Brokerage Co., also known as Lianjia, is one of China’s biggest realtors. It launched Beike in 2018 as its online platform for property brokerage. Beike, which means shells in Chinese, aims to serve more then 200 million households in more than 300 cities in China, according to its website. Beike raised about $800 million from Tencent in a funding round this year.

Details of Beike’s offering could still change as deliberations are at an early stage, the people said. A representative for Lianjia referred questions to Beike, whose representative declined to comment.

©2019 Bloomberg L.P.

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