Citic Said to Weigh Sale of Controlling Stake in China’s EBeauty

Chinese buyout firm Citic Capital is weighing a sale of its controlling stake in EBeauty Holdings Cayman Ltd. after a planned initial public offering stalled amid market volatility, people familiar with the matter said.

Citic is seeking a valuation of as much as $2 billion for the provider of e-commerce services to the cosmetics industry in China, said one of the people, asking not to be identified as the information is private.

The investment company held roughly 44% in EBeauty, according to a prospectus filed last March. Considerations are preliminary, no final decision has been made and Citic Capital could ...