Cloopen Group, a China-based cloud communication technology provider also known as Ronglian Cloud Communications and as Yuntongxun, has gone public following a $320m initial public offering on the New York Stock Exchange.
The company issued 20 million American Depositary Shares (ADSs), representing 40 million class A ordinary shares, priced at $16 each. It listed using the ticker symbol RAAS and shares closed at $29.65 yesterday.
Cloopen has developed smart cloud communications software aimed at clients in sectors such as transport, education, energy and finance.
Proceeds have been allocated to software and technology development, including in video and artificial intelligence, as well as the introduction of new products and strategic investments and acquisitions.
Cloopen most recently raised $125m in a series F round backed by education provider New Oriental’s Industrial Fund and led by Capital Venture Investment Fund. Mirae Asset, Parantoux Capital and CloudAlpha also took part in the round.
Prospect Avenue Capital led a $32m series E round in 2019 that also included Sequoia Capital and Vitalbridge Fund, Cloopen’s filing shows.
Telstra Ventures, the venture capital firm backed by telecommunications firm Telstra, backed a $25.6m series D round in 2018 together with Main Access and Trustbridge Partners, according to Cloopen’s prospectus.
Telstra Ventures invested an undisclosed sum in 2016, shortly after Cloopen secured $70m in a round led by Sequoia Capital and backed by fellow existing investor TBP Capital.
Sequoia Capital had reportedly provided $4m for the company in 2013 before Trustbridge Partners led a $15m series B round in 2015.
Investment holding company Hi Sun Technology owns a 17.4% stake following the flotation, down from 19.9%. Sequoia Capital holds 16.8% post-IPO, followed by Trustbridge Partners (12%) and founder, CEO and chairman Changxun Sun (8.7% personally and 8% through a vehicle called Cloopen Co).
Goldman Sachs (Asia), Citigroup Global Markets, CICC Hong Kong Securities, Tiger Broker (NZ) and Futu are the underwriters for the offering. They have been granted a 30-day option to purchase up to an additional 3 million ADSs.
