Selfie ap­pMeitu gauges in­ter­est in $750m IPO


Chi­nese main­land mo­bile de­vel­oper Meitu Inc said it started test­ing de­mand for a pro­posed Hong Kong ini­tial pub­lic of­fer­ing worth about $750 mil­lion, which could be the city’s biggest tech­nol­ogy list­ing in nearly a decade.

The Xi­a­men-based com­pany, which makes apps used to touch up selfie photos, will gauge in­ter­est from po­ten­tial in­vestors from Mon­day through Dec 2, ac­cord­ing to terms for the of­fer­ing ob­tained by Bloomberg. Meitu plans to use about 35 per­cent of the IPO pro­ceeds to ex­pand its smart hard­ware busi­ness, while around 25 per­cent will go to­ward strate­gic in­vest­ments and ac­qui­si­tions.

Meitu hasn’t set a tar­get list­ing date or de­cided when it will be­gin tak­ing or­ders for the share sale, the terms show.

The stock of­fer­ing from Meitu could­be­comea test case for main­land tech­nol­ogy com­pa­nies seek­ing to list in Hong Kong. A gov­ern­ment crack­down on back­door list­ings has made it tougher for busi­nesses to raise money in the Chi­nese main­land, while some en­trepreneurs be­lieve US ex­changes don’t of­fer high enough val­u­a­tions for their busi­nesses.

At $750 mil­lion, the Meitu list­ing would be the biggest Hong Kong first-time share sale by a tech­nol­ogy com­pany since Ltd’s $1.7 bil­lion of­fer­ing in 2007, data com­piled by Bloomberg show. Meitu plans to gauge de­mand this week from in­vestors in Hong Kong, Lon­don, New York and Bos­ton and will con­duct calls with Sin­ga­pore money man­agers, ac­cord­ing toMon­day’s terms.

The­com­pa­ny­willmeet select Asian in­vestors next week, be­fore start­ing a for­mal man­age­ment road­show at a later date. It plans to ear­mark about 15 per­cent of the IPO pro­ceeds for sales and mar­ket­ing, the terms show. Meitu will also use some­ofthe­money­to­ex­pandits in­ter­net ser­vice and fund re­search and de­vel­op­ment.

Mor­gan Stan­ley, Credit Suisse Group AG and China Mer­chants Se­cu­ri­ties Co are joint spon­sors of the of­fer­ing.

of the money raised will be used for smart hard­ware busi­ness ex­pan­sion

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