Chinese social media platform Xiaohongshu, also known as RedNote, is reportedly preparing for a potential initial public offering in Hong Kong. The company has engaged investment banks Goldman Sachs and CICC to manage the deal, with a listing potentially occurring in the second half of this year.
Towards the end of last year, Xiaohongshu was valued at up to $50 billion in private secondary trades. This follows a previous attempt at a U.S. IPO in 2021 that did not materialize, reportedly due to Chinese regulators' concerns about offshore listings amid heightened U.S.-China tensions. The company's valuation had previously stood at $20 billion in a 2021 funding round, dropping to a reported $17 billion in 2024, but has seen renewed investor interest.
Founded in 2013, Xiaohongshu functions similarly to Meta's Instagram, allowing users to share photos, videos, and text. It has also become a popular search engine for lifestyle content, boasting over 400 million monthly active users. The platform projects a profit of $3 billion for 2026. The planned Hong Kong IPO still requires approval from the China Securities Regulatory Commission, a process that could take several months.