UCloud Information Technology, a China-based cloud services provider backed by media group Bertelsmann, secured RMB1.94bn ($284m) initial public offering on Shanghai Stock Exchange’s Star Market.
The company issued 58.5 million shares priced at approximately $4.84 each, valuing it at about $2bn, and its share price increased to $10.60 on the first day of trading. CICC is lead underwriter for the offering.
Founded in 2012, UCloud operates 32 data centres across 25 countries and territories in Asia, Europe and the US. It focuses on products such as cloud storage, data analytics and cybersecurity tools and serves clients primarily in the internet, e-commerce, manufacturing, gaming and financial industries.
The company reportedly selected Star Market for its flotation as it is the only bourse in mainland China that enables companies to go public with a dual-class share structure, enabling founders to retain a majority of the voting rights.
UCloud raised an undisclosed amount of series E funding from telecommunications company China Mobile in mid-2018, having previously accumulated approximately $299m in overall funding.
Asset management firm Oriza Holdings and CICC Alpha, a subsidiary of investment bank China International Capital Corporation (CICC), had co-led a $139m series D round for the company in 2017.
Legend Capital, the venture capital firm formed by Legend Holdings, led UCloud’s $100m series C round in 2015, investing together with Bertelsmann, DCM Ventures, VMS Legend Investment Fund and GX Capital.
UCloud raised $50m in a 2014 series B round featuring Legend Capital, DCM Ventures and Bertelsmann Asia Investments, a local corporate venturing vehicle for Bertelsmann, having received $10m in series A funding from BAI and DCM the previous year.
