China-based photo retouching app developer Meitu has raised HK$4.88bn ($629m) in an initial public offering in Hong Kong that gave an exit to corporate investors including Sina Weibo and Foxconn.
Meitu issued 574 million shares priced at HK$8.50 each, at the low end of its HK$8.50- HK$9.60 range. It initially set a $1bn target when it filed for the offering in August this year.
Founded in 2008, Meitu offers an app that enables users to easily retouch, edit and add filters to photos for social media use. The company, which has also branched out into smartphone production, had more than 446 million monthly users for its app as of June this year.
Meitu had raised approximately $500m in funding prior to the oversubscribed IPO, $360m of which came from three rounds leading up to a 2014 round that valued it at $2bn, while contract manufacturer Foxconn invested an undisclosed amount as part of a May 2015 strategic partnership agreement.
The company’s earlier backers include social media platform Sina Weibo and IDG Capital Partners, the local VC affiliate of media firm International Data Group, as well as Tiger Global Management, Innovation Works and Qiming Venture Partners.
The proceeds will go to growing Meitu’s raw material and component supply chain as it looks to expand the hardware side of its business, while additional funds will support sales and marketing, strategic investments, research and development, and the strengthening of its internet services provision.
– Image courtesy of Meitu