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Sequoia-backed Baioo Family launches HK IPO

  • Andrew Woodman
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Baioo Family Interactive, a children's online game developer backed by Sequoia, has launched its Hong Kong IPO, seeking to raise between $200 million and $250 million.

Baioo is offering 706 million new shares in the listing, which is expected to take place next month. 

The company was set up in 2008 and claims to be China's largest children's online game developer by revenue in 2013 with a 40% share of the market in terms of children's web game spending. 

It has developed and launched six virtual worlds aimed at children aged six to 14. These include Aobi Island, Aola Star, Dragon Knights, Light of Aoya, and Legend of Aoqi. Baioo saw its revenue reach RMB455 million ($73.3 million) for the year ended 2013, compared to RMB203.2 million the previous year.

Sequoia invested $3.25 million in the company in 2010 in return for a 20% stake. The proceeds used for working capital, business expansuion and paying down previous debt incurred during research and development. 

Two recent Hong Kong IPOs involving Chinese internet companies include mobile game developer Forgame Holdings, which raised $206 million last October, and online board game developer Boyaa Interactive International - also backed by Sequoia - which raised $146 million in November.

Citigroup, Deutsche Bank and J.P. Morgan are arranging the Baioo listing.

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