AAA Corporates count down as iClick heads to IPO

Corporates count down as iClick heads to IPO

China-based online marketing software provider iClick Interactive Asia Group has set the range for an initial public offering that will enable corporates Bertelsmann and Sumitomo to exit, and could raise up to $53m.

The company plans to issue approximately 5.9 million American depositary shares priced at between $8 and $9 on the Nasdaq Global Market.

iClick has built an online marketing platform that helps marketers utilise data collected from a wide range of third parties to optimise their efforts. It also links clients to distribution opportunities with clients such as large online publishers.

Approximately $18m of the proceeds will go to research and development as iClick looks to enhance its software and expand its range of offerings, while a further $8m will support sales and marketing.

The company has not disclosed firm details concerning its funding but Bertelsmann Asia Investments, a corporate venturing subsidiary of media group Bertelsmann, is its largest shareholder, with a 13.7% stake that will be cut to 12.2% in the offering.

Sumitomo’s 12.1% share will be diluted to 10.7% in the IPO while Blue Focus International, which invested $60m in iClick in 2014, has a 13.5% stake that will be reduced to 12.1%.

Other notable shareholders in iClick include private investor Wing Hong Sammy Hsieh (9.3% post-IPO), investment vehicles Czerny Holdings and Cervetto Holdings (a combined 9.3%), Igomax (8.6%), Maestro Investment Holdings (7.5%) and O & K Investment (5.7%).

Network 1 Financial Securities and Shenwan Hongyuan Securities are the underwriters for the offering. They will have the option to buy approximately 880,000 more shares, which could lift the size of the offering to almost $61m.

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