VC-backed SMIT targets up to $37m in Hong Kong IPO

According to a filing, the company is offering 75 million new shares at HK$3.10-$3.88 apiece. About 40% of the captial has been earmarked for product planning, research and development while 30% will be used for marketing initiatives, including the development of sales networks both domestically and overseas. The rest remainder will go towards possible M&A activity.

Walden International has a 12.24% stake in SMIT, while Mayfield owns 10.11% and GSR Ventures and Oak Investment Partners have 20.9% and 25.73%, respectively. None of the VC investors will make a partial exit through the offering. While their shareholdings will be diluted as a result of the new share issue, the dilution effect is minimized through the exercising of pre-IPO options.

Net profit for 2015 came $3.3 million, down 39% year-on-year, while revenue improved by 16% to $65.1 million. Most of SMIT's sales derive from conditional access module (CAM) products, which use encryption technology to control television broadcasting access. The company was estimated to be the largest CAM provider by sales globally in 2014 with a 48.7% market share. 

Walden, Mayfield and GSR all participated in the company's $9 million Series A round in 2005, while Oak joined the existing investors in a $30 million Series B round in 2008. A Series C round worth $22 million was completed in 2011, in which Walden, GSR and Oak all re-upped.

Haitong Securities is the sole global coordinator and bookrunner for the IPO.

 

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

• Topics
• Greater China
• Technology
• IPO
• GSR Ventures
• Walden International
• Mayfield
• Oak Investment Partners
• Hong Kong (China)
• Exit