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Qeeka sets up Hong Kong debut
Posted on Wednesday, 11 April 2018 12:50
China’s largest mainland-based online home improvement platform has designs to list in Hong Kong via an initial public offering (IPO) that GlobalCapitalAsia suggests could be worth USD 400.00 million.
Baidu-backed Qeeka Home has submitted a draft prospectus to raise funds to develop its business and technology infrastructure and systems, as well finance strategic investments and acquisitions.
According to the application documents cited by the media, Goldman Sachs and CLSA Securities are underwriters for the listing of the Cayman Islands-incorporated e-commerce holding company.
Baidu owns a 14.4 per cent stake in Qeeka, which operates on the mainland through interior design and construction businesses known under the name Qijia.
The group has completed three financing rounds, namely one in 2010, another in 2015 and the last in March when it raised USD 22.30 million.
Qeeka had a market share of 25.7 per cent, based on platform trading volume, and connections to more than 6,680 renovation companies covering 250 cities, and 50.20 million unique visitors in March.
The group, which was founded by current chief executive Huajin Deng widened net losses to CNY 856.00 million in fiscal 2017, from CNY 410.00 million in FY 2016.
In 2014, Qeeka and several other investors acquired a total 80.25 million shares, or 19.8 per cent, of Guangzhou Seagull Kitchen and Bath from Guangzhou Chuangshengda Plumbing for CNY 535.27 million.
The business makes and sells plumbing equipment and hardware products, such as faucets, drainage items and temperature control valves.
So far this calendar year, there have been 37 IPOs announced by companies operating in the data processing, hosting and related services sector, according to Zephyr, the M&A database published by Bureau van Dijk.
Currently, the largest by value is the completed listing of iQiyi, via an offshore vehicle, in the US (USD 2.25 billion).
At USD 400.00 million, as reported by GlobalCapitalAsia, Qeeka’s debut would be the fourth-biggest of the year to date after DropBox (USD 756.00 million) and Bilibili (USD 483.00 million).
© Zephus Ltd