Lashou.com, a leading Chinese group-buying website, is planning to launch an initial public offering (IPO) on the Nasdaq as the loss-making site struggles with financial strains.

The company, which filed for an IPO of up to $100 million with the U.S. Securities and Exchange Commission in October, said it will offer 5.4 million American Depositary Shares, and will use as part of the proceeds to expand its sales network and build a call center.

In the first half of this year, Lashou reported around 390 million yuan ($60.51 million) in net losses, 7 times that of the total losses in 2010, due to skyrocketing expenses on marketing and intensifying competition. Group-buying websites are mushrooming in the country, making a dent to profitability of the fledgling industry.

The IPO will be a test of investor appetite for the Chinese Internet sector struggling with an accounting scandal early in the year.

"If the deal goes through it will be a very positive sign for investor sentiment in the Chinese Internet sector," said Muzhi Li, an analyst at Mizuho Securities. "However if this deal doesn't go through it might hurt other Internet companies trying to go public in the United States."