China-based online game publisher IDreamsky Technology raised $115.5m in its initial public offering on Nasdaq yesterday as it floated above its $12-$14 range.
China-based internet company Tencent bought $60m in shares in the offering to retain its place as the IDreamsky’s largest shareholder. It holds a 23.1% stake, down from 26.6% before the IPO.
Conglomerate Legend Holdings did not acquire any additional shares through the offering and so saw its stake diluted from 20.4% to 15.9%.
Other notable shareholders in IDreamsky include CEO Michael Chen, who holds a 17.1% share post-IPO through his Dream Data services holding vehicle; Redpoint Ventures, which holds a 12.9% stake; and DT01 Holding, a vehicle for company co-founders Anfernee Guan Jeffrey Lyndon Ko (4.3%).
IDreamSky claims to be the largest independent mobile game publishing platform in China. It plans to invest $60m of the proceeds in securing licenses and intellectual property rights for games, while $25m will be saved for future acquisitions.
Underwriters J.P. Morgan Securities, Credit Suisse Securities (USA), Stifel, Nicolaus & Company and Piper Jaffray have the option to buy a further 1.15 million shares, which would increase the size of the offering to almost $132.8m.
The company opened at $17.50 on Nasdaq yesterday and closed at $15.94.