logo
Share SHARE
FONT-SIZE Plus   Neg

China's Cheetah Mobile Files For Up To $300 Mln U.S. IPO

Chinese Internet and mobile security software company Cheetah Mobile, Inc. revealed in a regulatory filling on Wednesday its plan to raise up to $300 million in an initial public offering of its American depositary shares, or ADS in the U.S.

The Beijing, China-based company said it intends to apply to list its ADSs on the New York Stock Exchange, but did not reveal the ticker symbol, the number of shares, and the estimated price range.

In a Form F-1 filing with the U.S. Securities and Exchange Commission, the company said it intends to use the net proceeds from the offering to penetrate selected international markets, invest in research and development as well as sales and marketing activities.

The company also intends a part of the proceeds for other general corporate purposes, including strategic investments and acquisitions that complement its businesses and help to expand product offerings.

The company noted that it currently has no plan to declare or pay any dividends in the near future on its shares or ADSs. It currently intends to retain most, if not all, of its available funds and any future earnings to operate and expand business. Cheetah Mobile is a holding company incorporated in the Cayman Islands in July 2009, and directly and wholly owned by Kingsoft Corp. Ltd. or Kingsoft Corp. (3888.HK), which has been listed on the Hong Kong Stock Exchange since October 2007.

The company provides of a diversified suite of mission critical applications that optimizes Internet and mobile system performance and provides real time protection against known and unknown security threats for users.

The company had 329.5 million monthly active users for all of its applications in December 2013, and the applications have been installed on 346.6 million mobile devices as of December 31, 2013.

Its core applications for users are Clean Master, Battery Doctor, Duba Anti-virus, Cheetah Browser, and Photo Grid. The company had more than 380 online marketing business partners in 2013, including major Chinese Internet companies such as Alibaba, Baidu and Tencent.

The company generated 61.7 percent of its revenues from online marketing services in 2013, with the balance being generated by providing Internet value-added services, or IVAS, currently mainly from online games.

The company's revenues soared to RMB 749.9 million or $123.9 million in 2013, from RMB 287.9 million in 2012 and from RMB 140.1 million in 2011. Meanwhile, net income also skyrocketed to RMB 62.02 million or $10.25 million from RMB 9.84 million in 2012, compared to a net loss of RMB 30.2 million in 2011.

Following the completion of the offering, Kingsoft Corp. will continue to retain a majority of the company's aggregate voting rights due to its equity interests in the company and its dual-class share structure.

JP Morgan, Credit Suisse, Morgan Stanley, and Macquarie Capital are the lead underwriters for the offering.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Bank of Nova Scotia or otherwise known as Scotiabank, Friday reported lower net profit for the third quarter, in the absence of a year-ago gain. Earnings per share, however, came in line with the Street view. Further, the company said it raised its quarterly dividend by 2 cents. Non-traditional discount and variety stores operator Big Lots Inc. (BIG) Friday reported a decline in net profit for the second quarter, while net sales grew 1.2 percent from the prior year. Comparable sales for the quarter increased 2.8 percent. Google has rejected the European Union's charges that it abused its market power and the demanded that it change the way it ranks online comparison shopping services in its search results, setting up a potentially long legal battle with the EU regulator empowered to levy billions of euros in fines
comments powered by Disqus
Follow RTT