China DangDang Eyes 2005 IPO After Rejecting Amazon Offer
BEIJING -- DangDang.com, one of China's largest e-commerce companies, said it has stepped up plans for overseas funding after rejecting a takeover bid of up to $1 billion from U.S. Internet retailer Amazon.com (AMZN).
The company, with its business largely modeled after Amazon, said it is seeking an initial public offering on the Nasdaq stock market in 2005, two years earlier than originally planned, a spokesman said Friday.
A specific fundraising program hasn't been drawn up, public relations manager Li Dong told Dow Jones Newswires.
Li said DangDang's value is expected to grow to at least $500 million within the next two to three years while annual sales are estimated to rise to about 1 billion yuan ($1=CNY8.28), 10 times that recorded in 2003.
Founded mid-dot.com boom in 1999 by Peggy Yu, an MBA graduate from New York University, the Chinese language Internet retailer primarily sells books, video and audio products online.
DangDang's accelerated IPO plan follows its recent rejection of Amazon's offer for a 70%-90% controlling stake in the Chinese firm.
The company has been doubling annual sales in recent years and achieved break-even in 2003 after reporting several years of losses.
Li said six-months of negotiations with Amazon have been formally terminated despite the U.S. firm raising its original offer of $150 million.
It's more of an issue of control than price, he said.
"We much welcome the investment from Amazon ... but the only role (it can play) is as a strategic investor rather than a controlling shareholder," he said.
Jani Baker, director of public relations at Amazon.com in the U.S., refused to respond directly to queries about DangDang's claim of a rejected takeover offer.
DangDang's decison differs from the strategy of Chinese online auction house Eachnet. That company has received $180 million in investment from the U.S. online auction giant eBay Inc. (EBAY).
The strategy hasn't stopped DangDang from raising money through firms such as Tiger Technology Fund, a U.S.-based venture capital firm, which invested $11 million in Dangdang.com in February this year.
DangDang has also widened its business scope from its online book, audio and video sales by opening online fashion shops, a move that mirrors Amazon's expansion in the U.S.
"We aim to grow ourselves into a full-range B-to-C online provider, just as Amazon has done," Li said.
中国当当网计划2005年那斯达克上市
作为中国最大电子商务公司之一的当当网(DangDang.com)日前表示，公司将加紧推进海外融资计划。之前，当当网拒绝了美国互联网零售商亚马逊公司(Amazon.com Inc., AMZN)提出的最高可达10亿美元的收购要约。
当当网发言人上周五表示，公司目前计划于2005年在那斯达克市场进行首次公开募股(IPO)，较原定计划提早两年。当当网的运作模式主要借鉴亚马逊公司。
当当网公共关系部经理李动告诉道琼斯，公司目前尚未拟定具体的筹资计划。
李动表示，预计在未来2-3年内当当网价值至少将增长5亿美元，年销售额将达到人民币10亿元（1美元=人民币8.28元）左右，为2003年销售额的10倍。
当当网是一家中文界面的互联网零售商，主要销售书籍、影碟和声像产品。当当网创立于1999年，当时正值互联网泡沫时期。创始人俞渝(Peggy Yu)拥有纽约大学(New York University)的工商管理硕士学位。
在不久前拒绝了亚马逊公司的收购要约之后，当当网已加快其IPO进程。亚马逊公司拟收购这家中国公司70%-90%的控股股权。
当当网近年来的年销售额实现翻倍，并在历尽多年亏损后，终于在2003年实现盈亏平衡。
据李动透露，公司已经正式终止了与亚马逊公司长达半年之久的谈判，尽管后者这家美国公司已对其最初1.5亿美元的收购报价作出了大幅上调。
李动表示，这不仅是价格问题，更多的是控股权问题。
他补充说，当当网非常欢迎来自亚马逊公司的投资，但他们坚持后者只能以战略投资者的角色出现，而非控股股东。
亚马逊公司公共关系部负责人Jani Baker拒绝就当当网驳回其公司收购要约问题予以置评。
比较来看，中国在线拍卖商易趣网(Eachnet)的发展战略则有别于当当网。易趣网现已接受了美国在线拍卖巨头eBay Inc. (EBAY)1.8亿美元的投资。
不过，这并不阻碍当当网的筹资计划。美国风险投资公司Tiger Technology Fund今年2月份曾对当当网投资了1,100万美元。
当当网已将业务范围从书籍、影碟和声像产品的在线销售扩大至运营时尚商店，这与亚马逊公司在美国的扩张模式相类似。
李动表示，公司的目标是成为与亚马逊公司一样、业务范围全面的企业对个人客户(B-to-C)模式在线供应商。
