NEA-backed Red Baby, Uni-Power Plan for 2011 IPOs

Chinese baby products retailer Red Baby, and Chinese financial guarantee company Uni-Power are both planning for initial public offerings next year, Reuters reported. Both are backed by U.S. venture capital firm New Enterprise Associates. NEA, which manages more than $11 billion, has poured nearly $300 million in more than 20 Chinese companies, Reuters said. The firm expects as many as three of those companies to go public in the next year.

(Reuters) – Redbaby, China’s biggest online retailer for baby products, and Uni-Power, a Chinese financial guarantee company, are expected to go public in 2011, U.S. venture capital investor New Enterprise Associates (NEA) said on Thursday.

Redbaby, which sells baby items as well as other household goods. will seek an initial public offering in the United States, NEA’s managing director Jiang Xiaodong said in Shanghai. Jiang did not identify Uni-Power’s listing destination or the companies’ fundraising targets.

Global venture capitalists, betting on Chinese firms, hope that an IPO would boost the value of their holdings and generate handsome profits when they exit.

Underscoring strong demand for Chinese stocks, online video company Youku.com Inc YOKU.N and online retailer China Dangdang Inc DANG.N soared in their U.S. debuts on Wednesday.

NEA, which manages more than $11 billion globally and has invested in 650 start-ups, regards China and India as two main areas of investment, each accounting for about 20 percent of total investment, Jiang said.

In China, NEA has invested nearly $300 million in more than 20 companies, and has exited from firms including chip-makers Semiconductor Manufacturing International Corp (0981.HK), Spreadtrum Communications Inc (SPRD.O) and Actions Semiconductor Co (ACTS.O).

Jiang expects two to three of its portfolio companies in China will be listed in the next 12 months. (Reporting by David Lin and Jacqueline Wong; Writing by Samuel Shen; Editing by Ken Wills)