Viomi Technology, a China-based internet-of-things (IoT) technology provider backed by consumer electronics producer Xiaomi, has secured almost $103m in an initial public offering on the Nasdaq Stock Market.
The company priced 11.4 million American depositary shares (ADSs) at $9.00 each, at the foot of the IPO’s $9 to $11 range. It floated on Tuesday and its shares closed back at $9.00 yesterday, giving it a $812m market cap according to Marketwatch.
Viomi has developed a home IoT platform with more than 1.2 million users which can control a range of smart connected devices such as lights, locks, curtains and appliances. It has a strategic partnership in place with Xiaomi, which is also one of its biggest customers.
A total of $30.7m from the IPO will go to research and development, and the same amount to sales and marketing. Viomi has earmarked $25.5m to support strategic investments and acquisitions.
The company made a $10.6m net profit in the first half of 2018 while increasing net revenue almost fourfold to $157m. It has not revealed details of its earlier funding.
Xiaomi’s 19.5% share of Viomi was diluted to 16.4% in the offering. Co-founder and CEO Xiaoping Chen retains a 34.5% stake post-IPO while other notable shareholders include Shunwei Capital (17.3%) and fellow venture capital firm Sequoia China (5.2%).
Morgan Stanley and China International Capital Corporation Hong Kong Securities are joint bookrunners for the offering and Needham & Company is co-manager. They have the 30-day option to acquire an additional 1.71 million ADSs to lift the size of the IPO to exactly $118m.
Image courtesy of Foshan Viomi Electric Appliance Technology Co., Ltd.
