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KKR planning IPO for digital marketing firm Cue: Bloomberg
Posted on Friday, 08 November 2019 12:57
Private equity firm KKR & Co is considering taking Chinese digital marketing business Cue Holdings public after launching the company in March 2018, people close to the situation told Bloomberg.

These sources noted that a deal could fetch USD 400.00 million in proceeds and could happen as soon as the first half of 2020.

KKR is looking at Hong Kong and the US as potential places to sell shares, with the insiders, who asked not to be named as the matter is still private, saying advisors have already been hired to work on the possible stock market flotation.

Zephyr, the M&A database published by Bureau van Dijk, shows that if a deal goes ahead it would represent the largest Chinese data processing, hosting and related services company to announce an initial public offering this year.

Two people also spoke to Reuters and suggested Cue could raise between USD 300.00 million and USD 400.00 million at a market capitalisation of USD 2.00 billion.

The group seeks to help businesses within the country with their digital advertising strategies to improve growth.

Launched in 2018 by KKR, Cue comprises Qi-xin, AnG, WIN and Wina Tech brands.

It raised an undisclosed amount in its first funding round in August 2019, with investors including the buyout group, Princeville Global Management Company and Anchor Equity Partners (Asia).

Bloomberg’s sources cautioned that no final decision has been made, therefore there can be no guarantee of the deal going ahead.

They added that details, such as the amount of proceeds raised, could change.

According to Zephyr, 19 Chinese data processing, hosting and related services providers have announced or completed IPOs in the year so far.

In the largest of these, Aukey Technology is issuing new shares on the Shanghai Stock Exchange Sci-Tech Innovation Board to raise CNY 1.74 billion (USD 248.91 million).

This was followed by Servyou Software Group receiving proceeds of CNY 911.87 billion in its stock market flotation.

Other companies going public this year include Guizhou BaishanCloud Technology, GTTX Network Technology and CNISP Group.

© Zephus Ltd