China’s Sungy Mobile targets $80m US IPO
Sungy Mobile, a Chinese app developer backed by IDG Capital Partners, JAFCO, WI Harper and China Broadband Capital (CBC), is targeting a $80 million IPO and a listing on the New York Stock Exchange. The company, which focuses on apps, widgets and functions for Android smart phones, claims to be one of the top three publishers globally on Google Play.
According to a regulatory filing, IDG owns 28.7% of Sungy, while JAFCO, WI Harper and CBC hold 9.6%, 9.7% and 14.6%, respectively. AVCJ Research data indicate that IDG first invested in the company in 2005, with JAFCO and WI Harper entering four years later. It isn't clear when CBC invested.
Sungy's platform product, GO Launcher Ex, launched in 2010 and had attracted approximately 239 million users from more than 200 countries and regions as of September. The apps that run off this platform are designed to improve smart phone functionality and performance and aid personalization.
The company started out in 2003 creating products and services for WAP and Symbian operating systems but switched to Android as it grew in popularity. In addition to the GO platform and products, Sungy operates a mobile internet portal and mobile reading services.
Revenues, generated from advertising, paid apps, in-app purchases and sales of literary content, reached RMB185.2 million ($30.2 million) in 2012, up 91.7% year-on-year. The company also turned profitable in 2012, with net income coming in at RMB15.2 million. It achieved revenues of RMB139.3 million in the first half of 2013, with net income of RMB5.5 million.
Global smart phone shipments are projected to jump from 723 million units in 2012 to 1.6 billion units in 2017, according to IDC. App downloads will grow from 47.2 billion to 187 billion over the same period, with Android is expected to remain the dominant operating system.
Sungy is one of several Chinese companies currently pursuing US listings. Others include lottery services provider 500.com, online marketplace 58.com and travel website Qunar.
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