Hangzhou Raycloud Technology, a China-based e-commerce software provider that counts e-commerce group Alibaba among its investors, is planning to raise approximately RMB433m ($61.2m) in its initial public offering, DealStreetAsia has reported.
The company intends to issue up to 40.1 million shares on the Shanghai Stock Exchange’s Star Market, priced at RMB10.80 each. China International Capital Corporation (CICC) has been appointed lead underwriter for the IPO.
Raycloud provides software and services for online merchants, assisting in areas such as marketing, customer data and the supply chain. It specialises in helping sellers on Alibaba’s peer-to-peer marketplace, Taobao, and its business-to-consumer platform, Tmall.
The company generated a profit of about $8.8m in the year ending September 2019, from roughly $48m in revenue, according to the IPO prospectus.
The offering comes in the wake of undisclosed amounts from CICC, Cowin Capital and Lan Jiang Investment across angel and series A rounds, and from Alibaba, YF Capital and SAIF Partners China in 2017, according to DealStreetAsia.
Alibaba owns a 4.8% stake in Raycloud that looks set to be diluted to 4.3% in the offering. Its other main investors are Qiyu Investment Management (12.5%), Huaying Investment (9.1%), Yunfeng Xincheng Fund – likely part of private equity firm Yunfeng Capital – (4.9%) and Huacai Investment (4.3%).
Image courtesy of Hangzhou Raycloud Technology Co., Ltd.
