Benzinga | Oct 11, 2021 07:35AM EDT

Alibaba Backed Social Media Platform Migrates IPO Plans From US To China: Bloomberg

* Alibaba Group Holding Ltd (NYSE:BABA) and Tencent Holdings Ltd (OTC:TCEHY) backed Chinese startup Xiaohongshu, or "Little Red Book," is weighing a Hong Kong initial public offering, after putting its U.S. listing plans on hold, Bloomberg reports.

* Xiaohongshu aims to raise anything between $500 million to $1 billion via the IPO.

* Xiaohongshu, founded in 2013, was an online community that recommends overseas e-commerce sites for users in China. It later entered e-commerce and evolved into a social media platform where users share their daily moments through videos and pictures. The platform had more than 1,000 employees as of last year, and its monthly active users surpassed 100 million as of July 2020.

* Xiaohongshu, like several companies, was forced to revisit their U.S. listing plans after China proposed new rules for international IPOs. China now requires companies holding data on over one million users to submit to a cybersecurity review.

* Xiaohongshu sought a valuation of about $6 billion in a 2020 funding round.

* Price Action: BABA shares traded higher by 5% at $169.60 in the premarket session on the last check Monday.