• Meilishuo is said to be negotiating with investment banks
  • The online shopping site has thrived despite Alibaba and JD

Yet another Chinese technology company is headed for an initial public offering.

Meilishuo, the online fashion retailer backed by Tencent Holdings Ltd., is in talks with several investment banks about a U.S. initial public offering that could value the startup at about $4 billion, according to people familiar with the matter. The women-focused e-commerce company hosted a so-called bake-off to discuss IPO prospects with potential advisors and underwriters, the people said, asking not to be identified talking about private negotiations.

Meilishuo, which merged with rival Mogujie in 2016 to form a company with $3 billion in sales, was said to have been valued at $3 billion at the…