New stock news | Xiaohongshu is rumored to be preparing for IPO again, an informed source responds: the news is not true.

Regarding the recent news of a possible IPO by Xiaohongshu (Little Red Book), on August 8th, a source close to Xiaohongshu responded that the above news is not true. On July 12th, it was reported by the media that Xiaohongshu had completed a new round of financing, with a company valuation reaching $17 billion. This round of financing was participated in by foreign venture capital firms DST Global and Sequoia China, as well as other investors such as GGV Capital, Boyu Capital, and CITIC Capital. According to 36Kr, this round of financing was not the rumored "pre-IPO final round of new stock financing", but rather involved the transfer of existing shares. Xiaohongshu personally handled this transaction in order to help early investors exit. Tianyancha shows that DST Global is an investment group headquartered in Moscow, Russia, with its headquarters now relocated to Hong Kong. DST Global has previously invested in well-known companies such as Facebook, Twitter, WhatsApp, Snapchat, Spotify, JD.com, Alibaba, Xiaomi, Didi, Toutiao, and Meituan. In terms of performance, in 2023, Xiaohongshu saw a year-on-year increase of 20% in monthly active users to 312 million, a year-on-year revenue increase of 85% to $3.7 billion, and a net profit of $500 million (over 3.5 billion RMB), significantly higher than the $50 million that Xiaohongshu had initially predicted for 2023.