VC-backed app developer Meitu files for Hong Kong IPO
Chinese mobile internet company and photo app provider Meitu has filed for a Hong Kong IPO, offering potential exits to investors including IDG Capital Partners and Qiming Venture Partners.
According to a filing, IDG currently controls about 9% of the company via two funds under its IDG-Accel China vehicle while Qiming has about a 7% stake. Meanwhile, Tiger Global Management has 11% and ChinaAMC Capital Management holds another 7% under its Assets Eagle Global vehicle. Other investors in the company include Harvest Capital, H Capital and Ceyuan Ventures.
Proceeds from the float are expected to amount to up to $1 billion, after a private funding round earlier this year valued the company at about $3.8 billion, according to The Wall Street Journal. The launch will be enacted in the fourth quarter.
Founded in 2008, Meitu offers a portfolio of photo and social apps that have been activated on more than 1.1 billion unique devices in China and overseas as of the end of June. Monthly average user volumes increased 81% year-on-year during June to 446 million. During the same month, users generated about 5.6 billion photos and posted more than half on major social networks in China using Meitu products.
Revenue improved 52% during 2015 to RMB741.8 million ($11.6 million). The company posted a loss of RMB2.2 billion in 2015 versus a loss of RMB1.8 billion the prior year.
The IPO is being sponsored by Morgan Stanley, Credit Suisse and China Merchants Securities.
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