iHuman, Set for NYSE Debut Friday, Prices Shares at Midpoint

Beijing edutainment platform iHuman Inc. raises $84 million on the New York Stock Exchange Friday.

The company has priced its shares at $12 apiece, the midpoint of the expected range. It has sold 7 million American depositary shares in a deal secured by Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Tiger Brokers (NZ) Ltd., CMB International Capital Ltd., and CLSA Ltd.

Underwriters may acquire an additional 1.05 million ADSs upon the IPO, according to company statement.

IHuman offers interactive learning apps and smart learning devices and materials. The time is opportune for an IPO as the company has enjoyed fast growth this year, propelled by school closures due to Covid-19 and the increased need for online learning tools.

In its latest filing with the U.S. Securities and Exchange Commission, iHuman has provided its most recent financials, saying revenues in the half-year through June 2020 doubled year-over-year to $26.3 million. The company has also turned profitable, landing $798,000 in income in contrast to $40 million in losses for the six months through June 2019.

For the full year 2019, the company posted revenue of $30.9 million, up 67% from 2018, and net losses of $39 million.

IHuman said it intends to use the new capital for "expanding our product and service offerings, both domestically and overseas, development of our existing products and services, improving our technology structure, marketing and brand promotions, as well as for general corporate purposes."