Orchid, TPG-backed Duiba trades flat on Hong Kong debut

A total of 127.7 million shares were sold at HK$6 apiece, according to a filing. The pricing represents the bottom end of the indicative range, but the size of the offering was 16.7 million shares above the official allocation. Duiba's stock opened at HK$5.80 on May 7 and closed at HK$6.01.

Founded in 2014, the company has two major business segments. The first is a SaaS platform that helps businesses attract and retain online users. Mobile app developers use it to set up customer loyalty programs, launch marketing campaigns, and monitor user activity. The second is an interactive advertising service that engages online users through activities such as games and surveys, with a view to directing them to customers' websites and mobile apps. The advertising business also has some offline clients.

The two segments are closely correlated, with information on mobile user behavior generated by the SaaS platform used to improve the operational efficiency of the interactive advertising business.

More than 95% of Duiba's revenue comes from fees for advertising services and related solutions. The SaaS platform initially only generated income from merchandise sales and service charges for sourcing mobile phone payment credits and e-wallet cash rewards. It started to charge fees for its solutions on a pilot basis last year.

Revenue rose from RMB51.1 million ($7.5 million) in 2016 to RMB1.1 billion in 2018, mainly due to a more than 2,000% increase in advertising income. Nevertheless, the company's net loss widened from RMB87.4 million to RMB292 million over the same period on the back of rising administrative and distribution costs.

Duiba has completed four rounds of private funding, raising $116.8 million in total. Investors include Orchid Asia, TPG Capital, Shenzhen Qianhai Guotai No.1 Investment, Yunyi Investment, Cowin Capital, and Dingju Capital. Orchid and TPG contributed the bulk of the funding, leading a 110 million Series C round last year. Prior to the IPO, they held stakes of 5.7% and 13.3%, respectively.

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

• Topics
• Greater China
• IPO
• Technology
• Support services
• Media
• China
• TMT
• TPG Capital
• Orchid Asia Group Management
• professional services