China startup Mogu poised to raise US$67mil in NYSE IPO

The Star Malaysia - StarBiz - - Foreign News -

HONG KONG: Mogu Inc, a Chi­nese startup sell­ing fash­ion and cos­met­ics on­line, is poised to raise US$67mil in a US ini­tial pub­lic of­fer­ing (IPO) priced at the bot­tom of its mar­keted range, sources said.

The com­pany, which counts Ten­cent Hold­ings Ltd as an in­vestor, plans to price its sale of 4.75 mil­lion Amer­i­can de­posi­tary shares at US$14 each, the sources said. The shares were mar­keted at US$14 to US$16 apiece.

The price im­plies a mar­ket value of US$1.3bil, com­pared to the US$4bil the Chi­nese firm was tar­get­ing ear­lier this year be­fore a mar­ket sell­off hit de­mand for tech stocks.

When Meil­ and Mogu­ merged in 2016 to cre­ate Mogu, the com­bined com­pany said it was val­ued at US$3bil.

Mogu lost US$44mil on rev­enue of US$71mil for the six months ended Sept 30, a reg­u­la­tory fil­ing shows. A rep­re­sen­ta­tive for Mogu didn’t im­me­di­ately re­spond to a re­quest for com­ment.

The IPO marks the lat­est in a string of de­buts this year by com­pa­nies backed or con­trolled by Ten­cent, in­clud­ing Hong Kong­traded In­ter­net ser­vices gi­ant Meituan Dian­ping and New York­listed elec­tric ve­hi­cle maker NIO Inc.

On Mon­day, Ten­cent’s mu­sic-stream­ing arm said it would mar­ket its US IPO shares at US$13 to US$15 each, which would raise as much as US$1.23bil.

Mor­gan Stan­ley, Credit Suisse Group AG and China Re­nais­sance Hold­ings Ltd are ar­rang­ing Mogu’s list­ing. Its shares are ex­pected to be­gin trad­ing on the New York Stock Ex­change un­der the sym­bol MOGU. — Bloomberg

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