Will Qiniu's Third IPO Attempt in Hong Kong Succeed After Midea's Triumph?
Qiniu's IPO Journey Amid Influential Backers
Qiniu, a Chinese cloud service provider backed by Alibaba Group Holding, is making a third attempt at a Hong Kong initial public offering (IPO) after Midea Group's successful debut lifted market sentiment. The Shanghai-based company submitted a new IPO application on Sunday after its previous filing expired earlier this month.
Market Impact and Expectations
Qiniu plans to issue up to 234.7 million shares in Hong Kong, according to the approval it received from the China Securities Regulatory Commission in June. The company did not disclose a target amount for the fundraising. This prospective offering is expected to inject fresh energy into the city's IPO market, building on the momentum created by Midea’s US$3.98 billion listing last week.
- Hong Kong has raised around HK$51 billion across 45 IPOs this year, according to an estimate by KPMG.
- Chinese logistics giant SF Holding is preparing to launch a Hong Kong IPO that could raise up to US$2 billion.
- Hozon New Energy Automobile is advancing its Hong Kong listing plan.
Financial Overview and Strategic Goals
Qiniu, founded in 2011, has raised US$397 million over seven funding rounds, according to Crunchbase; Taobao China, Qiming Ventures, and YF Capital are among its backers. As the third largest audiovisual cloud service platform in China, Qiniu seeks to grow its customer base and expand overseas.
However, the company has yet to achieve profitability as it has focused on expansion, according to the prospectus. Its revenue figures steadily raised questions with 1.5 billion yuan (US$212.9 million) in 2021, 1.1 billion yuan in 2022, and 1.3 million yuan in 2023, while losses totaled 219 million yuan, 212 million yuan, and 324 million yuan during the same periods. The competition remains fierce, indicating losses may continue this year.
Overall coordinators for the offering include Shenwan Hongyuan Securities, Bocom International Securities, and Huatai Financial Holdings.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.