AAA Kingsoft to spin-off security subsidiary in $300m IPO

Kingsoft to spin-off security subsidiary in $300m IPO

Cheetah Mobile, a China-based developer of mobile and internet security software that is majority owned by software provider Kingsoft, has filed for an initial public offering on the New York Stock Exchange that could be worth up to $300m.

Kingsoft launched Cheetah as a subsidiary in 2009, and it has since developed a range of software relating to applications including online security, power optimisation and photo collaging. Kingsoft still owns 54% of Cheetah but has divested shares to a range of investors, though no information regarding specific investments is available.

TCH Copper, a subsidiary of internet company Tencent, holds an 18% stake in Cheetah, while investment vehicle Fax Vision owns 13.5%, investment bank Core-Pacific Yamichi 8.2% and private equity firm Matrix Partners 6.3%.

Cheetah made a $10.2m profit in 2013 from revenues of $123.9m. It plans to use the proceeds to expand internationally, to enhance its sales and marketing activities, and to strengthen its research and development.

Morgan Stanley, J.P.Morgan, Credit Suisse and Macquarie Capital are acting as underwriters for the offering.

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