Orchid, TPG-backed Duiba files for Hong Kong IPO
Duiba, a Chinese enterprise services company in which Orchid Asia and TPG Capital recently invested $110 million, has filed for a Hong Kong listing.
Duiba’s main products are a user management platform designed to help businesses attract and retain online users and an interactive advertising service aimed at engaging online users through games, surveys, or other activities. According to iResearch, the company was China’s leading user management service provider in 2017 in terms of the number of mobile apps registered with the platform. It was also the leading interactive advertising service by revenue, with a market share of more than 50%.
When Duiba launched the user management platform in 2014 it was offered for free. The company began to charge users on a pilot basis earlier this year. Users of the platforms include iQiyi, Sina Weibo, Ele.me, and Baidu Maps.
Revenue rose from RMB51.1 million in 2016 to RMB646 million last year, of which 90% came from the advertising business. Over the same period, the company went from a net loss of RMB87.4 million to a net profit of RMB98.1 million.
In addition to its enterprise platforms, Duiba operates the content aggregator mobile app Tiantian Quwen. The company launched the app in March to generate and monetize its own user traffic.
According to the prospectus, Duiba will use the proceeds to of the IPO to expand its team, improve its technology platform, and invest in or acquire businesses that can contribute to its growth strategy. The company will also invest in its research operations, with a particular focus on optimizing data analytics and AI capabilities and expanding its user information database. Financial details about the offering have not been disclosed.
TPG and Orchid committed $110 million in Series C funding to the company earlier this year, taking stakes of 5.7% and 13.3%, respectively. TPG made the investment via its fourth middle market and growth equity fund, which closed at $3.7 billion last December.
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