VC-backed iDreamSky jumps 6% on debut after $116m US IPO

IDreamSky raised $116 million by offering 7.7 million American Depositary Shares at $15 each, above the indicative range of $12-$14 per share. The stock touched a high of $19 during its first day of trading before eventually closing at $15.94.

Shenzhen-based iDreamSky was founded in 2009, and claims to be the largest third-party mobile game publishing platform in China, based on the number of active users in 2013. In the first quarter of this year, it had 98.3 million monthly active users.

The company redesigns and optimizes third-party games and delivers them to local users through its own distribution channels - iDreamSky Game Center and www.uu.cc - and though third-party channels such as app stores.

To date, the firm has distributed worldwide hits such as Fruit Ninja, the Temple Run series and Subway Surfers. It will use the proceeds raised from the public offering to purchase game licenses, other intellectual property rights and for acquisition, according to a regulatory filing.

iDreamSky recorded RMB246.6 million ($41 million) in revenue last year, up from RMB19.4 million in 2012. Meanwhile, it recorded a net income of RMB27.8 million in 2013, compared to a net loss of RMB9.3 million in 2012.

The company received RMB8 million in seed funding in 2010. Legend and Redpoint then invested in the company in 2011, contributing $10 million between them. Upon completion of the IPO, Legend's stake has reduced to 15.9% from 20.4% on a fully diluted basis, while Redpoint owns 12.9%. Tencent Holdings, with a 23.1% stake, is the largest shareholder in the firm.

Credit Suisse Securities, J.P. Morgan Securities and Stifel Nicolaus & Co. were the lead underwriters for iDreamSky's offering.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Exits
• Technology
• Venture
• TMT
• Venture
• IPO
• USA
• Legend Capital
• China