The 10-year-old company, backed by online retailer JD.Com Inc, is targeting a valuation of $4 billion to $5 billion in the float, said the people.
Aihuishou has hired Bank of America and Goldman Sachs to work on the IPO and plans to file around mid-May, said the sources, who declined to be named as the information is confidential.
The company and the two banks declined to comment.
Aihuishou recycles second-hand mobile phones, computers, laptops, cameras and other electronics products from individuals and corporations and resells them on its website and apps, as well as offline stores in 140 cities, according to its website.
The company aims to attract investors with its environmental, social and governance (ESG)-friendly business nature, said one of the people.
It also counts International Finance Corporation and Tiger Global as investors, the website shows.
JD.Com disclosed in 2019 it would merge its own Paipai secondhand business into Aihuishou with certain exclusive traffic resources for the next five years, and additionally invest $20 million in cash in exchange for a non-controlling interest in the company.
In February, Aihuishou completed a $200 million pre-IPO fundraising in which JD.Com, its biggest shareholder, also invested, according to one of the people. The company declined to comment on the fundraising.
Chinese IPOs in the United States have been worth about $4.3 billion so far in 2021, according to Refinitiv.
There was $12.03 billion worth of deals in 2020, the data showed. Reporting by Kane Wu, additional reporting by Scott Murdoch and Julie Zhu; Editing by Aurora Ellis