China's Cloopen, Adagene complete strong US IPOs

Cloopen sold 20 million American Depository Shares (ADS) at $16.00 apiece to raise $320 million. Its stock opened at $27.00 on February 10 and jumped as high as $59.00 before closing at $48.00, an increase of 200%.

Sequoia China is the company's largest external shareholder with 16.76%, while Trustbridge Partners has 12.04%, according to a filing. Their voting power is much smaller because of the dual-class share structure. Other backers include Prospect Avenue Capital, Vitalbridge Capital, Telstra Ventures, V Fund, Steppe Capital, and a number of vehicles associated with Mirae Asset Financial Group.

Cloopen, also known as Yuntongxun, claims to be the largest multi-capability cloud communications services provider in China. It offers 12,000 customers a range of real-time voice and messaging systems, including tools for multi-channel customer interaction and intra-organization communication.

Revenue improved 30% during 2019 to RMB650.3 million ($100.7 million) and came to RMB509 million during the first nine months of 2020. The company's net loss widened from RMB155.5 million in 2018 to RMB183.5 million in 2019 and was RMB203.7 million as of September 2020.

Adagene raised $139.7 million, selling 13.5 million ADS for $19.00 apiece, representing the top end of the indicative range, according to a filing. The stock opened at $20.40 and traded as high as $31.00 before closing at $29.99.

GP Healthcare Capital owns 10.2% of the company, while Eight Roads, F-Prime Capital Partners, Wuxi Pharmatech Healthcare Fund, and General Atlantic own stakes of 9.2%, 9.2%, 8.9%, and 8.4%, respectively. Adagene raised more than $150 million in private funding, with General Atlantic leading a $69 million round early last year.

The drug developer focuses on antibody-based therapies for both pharmaceutical partners and its own product pipeline. It claims to combine computational biology and artificial intelligence to design novel antibodies that address unmet patient needs. Four programs that have achieved clinical stages of development, targeting various cancers, including non-Hodgkin's lymphoma.

Adagene is still in the pre-revenue phase. Its net loss widened from $15.3 million in 2018 to $16.4 million in 2019 and stood at $29.6 million in September 2020. The company will use 95% of the proceeds from the IPO for R&D.

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• Topics
• IPO
• Healthcare
• Technology
• Greater China
• China
• Sequoia Capital
• Prospect Avenue Capital
• GP Capital
• Eight Roads
• General Atlantic
• Pharmaceuticals
• enterprise software