Chinese selfie app Meitu now worth €605 mn
The popular app priced the IPO at HK$8.50 ($1.05) per share, with 574 mn new shares available. At this value, it places Meitu’s worth at €605 mn, Reuters reported.
Trading, which started on 15th December 2016, may have lacked the positive response it had hoped for, with low pricing failing to excite some investors.
With the slogan, 'Create your own beauty', the company offers its consumers a range of apps designed to provide advanced facial recognition, editing and retouching capabilities.
As of 31st October 2016, the image-sharing Chinese technology had been activated on over 1.1 bn devices around the globe, engaged 456 million monthly active users (MAUs) and generated 6 bn photos per month.
Meitu’s presence in the Hong Kong market may well encourage other technology startups to aspire to IPO status. It is the largest in it's industry space since leading e-commerce platform, Alibaba Group Holding, achieved the same feat back in 2007.
Meitu announced that it intends to use approximately 29.0% of the net proceeds to develop its component and raw material sourcing arm, as it looks to expand its mobile phone production capabilities.
In a bid to grow the business further, around 22.6% will be invested in or used to acquire complementary businesses. While approximately 19.7% will focus on carrying out various sales and marketing initiatives in China and wider regions, around 13.1% will be ploughed into strengthening its internet services business.
Approximately 6.6% will be used to optimise its R&D efforts, while the remaining 9.0% will be used for general working capital.
“The successful listing on the HKEx offers us an effective capital platform to support our future growth, and to strengthen our leading position in the mobile internet industry. Looking ahead, we will continue to roll out our strategic coverage in platformisation, globalisation and in building a social ecosystem, to deliver the greatest value to our investors and shareholders,” Meitu said in a press release.