Another Giant VC-Backed IPO on the Way from China: Report

(Reuters) – Chinese online clothing retailer Vancl could raise $1 billion in the largest Internet initial public offering from the Asian country in the United States this year, IFR reported on Tuesday.

The Beijing-based company could soon mandate banks on the deal, which is planned for the fourth-quarter of 2011, said IFR, a Thomson Reuters publication.

Vancl, founded in 2007, has received backing from private equity and venture capital firms including IDG Capital Partners, SAIF Partners, Ceyuan Ventures Management, Tiger Global Management and Qiming Venture Partners. The company is among the four most profitable consumer retail Web sites, IFR said.

Vancl has raised a total of $142 million in venture funding over three rounds since 2007, including a $100 million round in December from Ceyuan, IDG, SAIF and Tiger Global, according to Thomson Reuters (publisher of peHUB).

Ceyuan, IDG and SAIF funded Vancl’s $12 million seed round in December 2007, and those three investors plus Qiming funded the company’s $30 million second round in July 2008, according to Thomson Reuters.

No valuation data were available for any of the company’s venture rounds.

The poor performance of recent Chinese Internet IPOs, such as social networking company Renren (RENN.N), could temper expectations for a high valuation at Vancl, IFR said. Renren’s stock closed 11 percent lower than its IPO price on May 23, after soaring in its first day of trading.

Reporting by Jing Song, Reuters; Writing by Elzio Barreto, Reuters

Additional reporting by Lawrence Aragon, peHUB