The potential IPO size and valuation are not immediately known, but another two separate sources said that Xiaohongshu was valued in private secondary trades at as much as $50 billion towards the end of last year.
The company, also known as RedNote, could list as early as the second half of this year, the two separate sources said. All the sources declined to be named as they were not authorised to speak to the media.
Shanghai-based Xiaohongshu did not respond to requests seeking comment. Goldman declined to comment, while CICC did not immediately respond to a request seeking comment.
Bloomberg first reported the firm’s IPO plan on Monday, and said the company was preparing to confidentially file for the Hong Kong listing by the end of June.
Founded in 2013, Xiaohongshu, whose name translates to “little red book”, is similar to Meta’s Instagram in that it allows users to curate photos, videos and text documenting their lives.
In recent years it has also become a de-facto search engine for young people looking for travel tips, lifestyle hacks and restaurant recommendations, with over 400 million monthly active users since 2025.
Xiaohongshu’s projected profit for 2026 could reach $3 billion, one of the sources said.
The startup in 2021 had confidentially filed for a U.S. IPO, but the process failed to materialise after Chinese regulators voiced concerns about the listing venue, said one of the sources and a fifth person with knowledge of the plans.
China tightened its grip over private media and internet businesses in 2021 amid China-U.S. tensions, and strengthened supervision of offshore listed companies.
Xiaohongshu’s Hong Kong IPO plan still needs a green light from the China Securities Regulatory Commission, which could take months to make a decision, sources said.
The firm’s valuation, which reached $20 billion in a funding round in 2021, dropped to a reported $17 billion in 2024.
Investors however warmed to the company again in 2025 after TikTok users in the U.S. flooded its pages, driven by a looming US ban on TikTok in early January.