Japan-based social gifting platform Giftee has been approved for an initial public offering on the Tokyo Stock Exchange (TSE) that will enable telecommunications firm KDDI to exit, The Bridge has reported.
The offering will consist of 4.4 million shares, 800,000 issued by the company and some 3.6 million sold by shareholders, at an estimated price of ¥1,250 each, raising a total of $51.7m. About 660,000 more shares have been reserved for the over-allotment option.
Founded in 2010, Giftee operates a digital gifting service that enables users to send each other electronic gift vouchers that can be redeemed at brick-and-mortar stores.
The company subsequently introduced an enterprise version of the product which has become an increasingly large part of its business. It intends to use the IPO proceeds to hire sales and product development staff, and to boost marketing.
Giftee was the first startup admitted to Labo, the accelerator operated by KDDI’s Ventures Program, in 2011. It raised $180,000 from Labo, internet company Digital Garage, e-commerce companies Kakaku and NetPrice (now known as Beenos), VC firm Inspire and various angel investors the same year.
Digital Garage and VC firm Sunbridge Venture Partners added an undisclosed amount of funding in 2012, before VC firm Jafco invested an undisclosed sum in 2016.
KDDI is the company’s largest shareholder, with a 15.5% stake, followed by Jafco, which owns just over 15%, according to The Bridge. Founder and chief executive Mutsumi Ota holds a 20.5% share.
Nomura Securities is lead manager for the offering, which is expected to take place on September 20. The other underwriters are Mizuho Securities, SMBC Nikko Securities, SBI Securities, Daiwa Securities, Iwai Cosmo Securities, Monex Securities, Matsui Securities, Mito Securities, Okasan Securities and Okasan Online Securities.
