Royole, a China-based flexible displays manufacturer backed by diversified conglomerate Yuexiu Group, is aiming to raise approximately $1bn in funding ahead of an initial public offering, Bloomberg reported on Friday.
Potential investors in the round have not yet been identified but Royole is seeking a valuation of at least $8bn, people familiar with the matter told Bloomberg. The company declined to comment on its funding plans or the IPO rumours.
Founded in 2012, Royole develops bendable electronics displays, and unveiled its first foldable phone in 2018. It formed a partnership with aerospace manufacturer Airbus in December 2018 that could involve its technology being integrated into the latter’s cabins, and it is also working on clothing, furniture and kitchen products.
The funding is expected to be used for increased sales and marketing activities, and to expand the company’s research facilities. The company opened a $1.6bn production plant in Shenzhen in June 2018.
Royole has raised more than $1bn to date and was valued at $5bn as of its last funding round, an $800m series D in 2017 featuring financial services providers Bank of China, Industrial and Commercial Bank of China, China Citic Bank, Agricultural Bank of China, Ping An Bank and SPD Bank.
The series D round also included Warmsun Holding Group, Hanfor Capital, Zhonghai Shengrong Capital, and Tanshi Capital.
Investment group AMTD signed a strategic investment and collaboration agreement with Royole in March 2018 and is an investor, though financial terms of that deal have not been disclosed. Yuexiu was a shareholder in the company by March 2018, though it is unclear when it invested.
Royole’s existing backers also include IDG Capital, which took part in its $175m series C round in 2015 alongside Shenzhen Capital Group, Shenzhen Green Pine Capital Partners, Jack and Fischer Investment and Alpha Wealth Finance.
Fuho Capital, KIG Capital Advisors, Qianhai FOF, Knight Capital, Poly Capital Management, angel investor Xie Zhikun and a venture capital arm of Shenzhen’s municipal government are also among the investors in the company
– Image courtesy of Royole.
