MEILISHOU, the online fashion retailer backed by Tencent Holdings Ltd., is in talks with several investment banks about a U.S. initial public offering (IPO) that could value the startup at about US$4 billion, according to people familiar with the matter. The women-focused online retailer hosted a bake-off to discuss IPO prospects with potential advisors and underwriters, the sources said. Meilishuo, which merged with rival Mogujie in 2016 to form a company with US$3 billion in sales, was said to have been valued at US$3 billion at the time of that deal. The company, whose name means “Beauty Talk,” is one of the more popular fashion and cosmetics retailers online, a niche it’s clung to despite the dominance of Alibaba Group Holding Ltd. and JD.com Inc. Meilishuo’s envisioned US$4 billion valuation is an initial target and could change if a deal proceeds, the sources said. It is one in a growing wave of Chinese technology firms looking to sell shares to the public. Smartphone maker Xiaomi Corp. is seeking a valuation of as much as US$100 billion in a much-anticipated offering, people familiar with the matter have said, while Meituan Dianping, a Chinese food review and delivery giant also backed by Tencent, has begun discussions about a Hong Kong IPO at a valuation of at least US$60 billion. “Tencent wants to develop e-commerce via its partners, so Meilishuo could get a lot of resources and help,” said Li Yujie, an analyst with RHB Research Institute Sdn in Hong Kong. “It still depends on how the overall market performs, but e-commerce sector-wise it would be a good year to fetch a good valuation.” Meilishuo, which didn’t respond to requests for comment, was said to have considered a U.S. listing as early as two years ago. Most of China’s largest tech corporations have picked New York for their debuts, seeking the wide investor base and higher international profile that an American listing confers. China, however, is now encouraging many of those same firms to also list shares on domestic exchanges. (SD-Agencies) | 