WiMi Prices IPO at $5.50 per ADS, Ready to Lift off Wednesday

The holographic AR company, the leading in China, raises $26.1 million in an IPO celebrated virtually on Wednesday.
Anna VodApr 01,2020,13:00

The ongoing coronavirus uncertainty could not hold off the U.S. listing plans of WiMi Hologram Cloud Inc. (Nasdaq: WIMI), a Chinese holographic AR platform. On Wednesday, the Chinese company announced the pricing of its shares at $5.50 per American depositary share, set to lift off today on the Nasdaq Global Market.

WiMi has offered 4.75 million ADSs and has thus raises $26.1 million in its IPO, celebrated virtually at a time when New York is on quarantine.

Bookrunners on the deal, The Benchmark Company LLC, Valuable Capital Ltd., Maxim Group LLC, China Merchants Securities (HK) Co. Ltd, BOCI Asia Ltd., and Axiom Capital Management Inc., may acquire an additional 712,500 ADSs upon the IPO to cover over-allotments, WiMi said.

In its filings with the U.S. Securities and Exchange Commission, WiMi said it intends to use the proceeds from its IPO to boost holographic R&D, as well as for strategic acquisitions and investments.

Founded in May 2015, WiMi caters to clients in the advertisement and entertainment fields, delivering "innovative, immersive and interactive holographic augmented reality experience." From a revenues standpoint, Wimi has outperformed competitive rivals in China, and is the largest holographic AR application platform in China in terms of revenues in 2018, according to market analytics firm Frost & Sullivan, as cited in WiMi's prospectus.

For 2018, the company reported operating revenues of $32.8 million, a 17% increase from the preceding year, with $13 million in profit. For the six months through June 2019, WiMi posted operating revenues of $23.1 million on income of $11.5 million.

While COVID-19 wreaks havoc in global markets, many well-known investors and experts are looking to Chinese stocks as a relative safe haven. The country where the outbreak occurred early this year is now reporting fewer new infections, most coming from overseas.