AAA Xunlei targets $100m as it gives IPO another go

Xunlei targets $100m as it gives IPO another go

China-based digital media provider Xunlei has filed for an initial public offering in the US that could raise up to $100m, after cancelling a $140m IPO in October 2011.

Xunlei’s shareholders include internet company Google, which invested $5m in the company in 2007, and which held a 2.8% stake as of late 2011, and IT media and data company IDG, which initially invested $1m in Xunlei in 2004 and a further $10m the following year.

IDG also participated in a $310m round last month alongside internet services company Xiaomi, which invested $200m, software provider Kingsoft, which provided $90m, and investment firm Morningside. The round represented Xunlei’s first funding since 2007.

Xiaomi now holds a 27.2% share of Xunlei, while IDG owns 9.7%. Other notable shareholders include Morningside (14.5%), Vantage Point Global, an investment vehicle for Xunlei founder Shenglong Zou (12.6%), Kingsoft (12.2%), Primavera Capital (5.7%), Ceyaun Ventures (5.4%) and Aiden & Jasmine (5.0%).

Xunlei intends to spend the proceeds from the offering on developing its technology, infrastructure and products, and to acquire digital media content and exclusive game licenses for its game accelerator.

The company is the 12th largest internet company in China by user base and its accelerator has an 81.4% market share, according to a regulatory filing. It withdrew from its IPO plans in 2011 amid concerns that it may have been vulnerable to legal action concerning its origins as a provider of illegal downloaded content.

J.P. Morgan Securities, Citigroup Global Markets and Stifel, Nicolaus and Company are acting as joint book-running managers for the offering, while Oppenheimr & Co will also serve as an underwriter.

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