BlueCity Sets Price Range for Upcoming IPO

The fast-growing Chinese LGBTQ platform has raised its IPO target to $90 million.
Anna VodJul 03,2020,06:55

Asia’s top social platform for LGBTQ users, BlueCity Holdings Ltd., is all set for its upsized initial public offering next week, priced in the range of $15 to $17 per American depositary share.

The Beijing-based company said in its amended prospectus today that it is selling 5.3 million of its ADSs in an IPO worth up to $90.1 million.

The underwriters will have an option to acquire an additional 795,000 ADSs upon the listing. They are AMTD Global Markets Ltd., Loop Capital Markets LLC, Tiger Brokers (NZ) Ltd., Prime Number Capital LLC, and R. F. Lafferty & Co., Inc.

BlueCity operates Blued, a platform that offers social connection, access to health services, and family planning to LGBTQ individuals worldwide. It boasted to serve more than 49 million registered users, 6 million average monthly active users, and more than 210 countries and regions. In China, India, Korea, Thailand, and Vietnam, it claims to be the largest in a number of parameters.

The company has publicly filed its preliminary prospectus just two weeks ago and, already, despite the ongoing U.S.-China tensions, it was ushered to IPO by apparent investor interest in a country that is eager to support minority groups. Earlier, BlueCity had put $50 million as a placeholder IPO target.

For 2019, BlueCity posted revenues of $107.2 million, up 51% year-over-year. Net loss narrowed 63% to $7.5 million, according to the filing.

For the first quarter, it reported revenues of $29.3 million on losses of $1.1 million.

The company had $39.4 million in cash and cash equivalents as of March 31.

BlueCity plans to pump new capital into geographic expansion, technology and big data, and general corporate purposes.

BlueCity has applied to become publicly traded under the symbol “BLCT” on the Nasdaq Global Market. It is scheduled to lift off on Wednesday, July 8.