China based e-commerce company DMall E-commerce Co. is preparing for a $500 million initial public offering in the United States stock market. Sources directly involved in the matter said the company has already hired JP Morgan Chase & C0. (JPM), Bank of America Corp. (BAC) and Goldman Sachs Group Inc. (GS) to serve as its financial advisers and underwriters in the IPO.
The company is looking forward to have its U.S IPO during the second half of the year. The sources further revealed that DMall will be going has resolved to go public through merger with a Special Purpose Acquisition company (SPAC) rather than the traditional IPO.
Citing data from the company’s website, DMall was founded five years ago by the founder of retail company Wumart Group Zhang Wenzhong as an online distribution channel.
Nine months after its establishment, DMall had 120 chain store partners with an access of 13,000 stores countrywide and 18 million monthly active users on its application.
The company held its last financing round last October in which it raised 2.8 billion yuan. This round was led by China Structural Reform Fund and The Industrial Bank Co which also doubles up as the company’s investment unit.