Aug 08, 2018 (China Knowledge) - Shanghai-based Weimob, a marketing and cloud services provider, has filed for an initial public offering (IPO) in Hong Kong on Monday, jointly sponsored by Deutsche Bank and Haitong International Securities Group.
Weimob specializes in offering cloud-based marketing solutions to small-to-medium sized enterprises via Tencent's social media platform WeChat. It was initially a service provider on WeChat official accounts back in 2013 and then begins to sell marketing solutions through the WeChat mini program interface. Weimob unveiled its first "software as a service" (SaaS) products in 2013, which is designed to help small business owners to tap into the effectiveness of internet and social media marketing.
According to its IPO prospectus, it had about 2.6 million merchant registers for SaaS products as of March 2018. Its Q1 18 revenue surged 106.1% YoY to RMB 162 million (USD 23.81 million), and its profit soared 1486% YoY to RMB 11.1 million (USD 1.63 million).
About 30% of the IPO proceeds will be used to fund its investment in infrastructure and research, ranging from setting up more big data centers to recruiting more AI specialists. About 25% of the IPO proceeds will also be invested in strategic M&A, cooperation and investment in various sectors, as part of an effort to expand the company's presences in the whole industrial chains, said the company.
Currently, Hong Kong-listed internet behemoth Tencent holds a 3.43% stake in Weimob. Tencent ranks as one of China's dominant tech dealmakers with a spate of investments in high-tech start-ups from e-commerce, live-streaming to biotech and artificial intelligences. Apart from Weimob, a series of Tencent-backed tech firms are gathering pace to be listed, including game live-streaming app Douyu and short-video app Kuaishou.
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