Job listing site Zhaopin is the latest Chinese company to file for an U.S. IPO
It plans to raise up to $100 million.
Companies that stand to benefit from the IPO include Seek International, Australia’s largest online job site, which owns a 79% stake in Zhaopin, and Cavalane Holdings, which holds 19.3%.
Zhaopin was founded in 1994 and had 74 million registered users as of 2013 and about 10.5 million job postings from 250,000 unique customers in the fiscal year ending June 2013, when it recorded $147 million of revenue. Most of that amount, or 84.3%, came from its online recruitment business.
Its filing is one of several Chinese tech companies that will or are expected to hold U.S. IPOs this year. The most notable is Alibaba, China’s biggest e-commerce firm, which is expected to hold its IPO soon. Its public offering may value Alibaba at more than $100 billion.
Zhaopin is raising funds as its competition increases in China. According to TechNode (TechCrunch’s partner site in China), the top three job listing and recruitment sites in the country are Zhaopin, 51job, and ChinaHR.
For example, LinkedIn entered the Chinese market in February. Though China is a notoriously difficult market to tap for foreign tech companies, LinkedIn already had four million registered Chinese users from 80,000 different companies on an English-language site that had been accessible in the country for 10 years before its official launch.
As part of its official launch, LinkedIn told TechCrunch’s Ingrid Lunden that the company had formed a joint venture with Sequoia China and CBC to expand its business in the country and develop localized services. For the company, China presents a potential market of 140 million professionals, or about one in five of all knowledge workers globally, according to LinkedIn CEO Jeff Weiner.
Zhaopin also has to contend with several domestic challengers that have attracted investor attention by focusing on specific markets. These include Liepin, an executive recruiting platform that landed a $70 million Series C round in April Neitui, an IT job site and RenRen Headhunting, a crowdsourcing recruiting app.