Qiniu Ltd., a Chinese cloud and data services provider, seeks to become publicly traded in New York in an initial public offering of up to $100 million.
Based in Shanghai, Qiniu is a cloud-based Platform-as-a-Service company providing end-to-end intelligent media cloud and analytics solutions as well as machine data analytics solutions. In 2020, it held 7.5% of the market as China’s largest independent Media Platform-as-a-Service, according to market analytics firm Frost & Sullivan.
Last year, Qiniu booked $166.2 million in revenues, up 32% from 2019, on losses of $2.9 million. In the first quarter of 2021, revenues rose 13% to $49.2 million, while losses were $4.2 million, as reported in the prospectus.
Again citing Frost & Sullivan, Qiniu said China's public cloud service market is expected to grow at a CAGR of 31.6% to reach $69.6 billion by 2025, outpacing the estimated global growth of 24%. The deployment of 5G, IoT technologies, real-time interaction, and cloud adoption will be the growth drivers for Qiniu, the company said.
Qiniu is backed by Alibaba Group (NYSE: BABA; HKEX: 9988), with Alibaba’s Taobao China Holding Ltd. holding 17.7% equity in the platform prior to IPO. A director from Alibaba, Yanxiang Jiang, sits on the board of Qiniu. The company is also backed by state-owned China Structural Reform Fund Corp., according to the filing.
Qiniu said its technology infrastructure was built in partnership with the cloud unit of the Chinese giant Alibaba, as well as Tencent Cloud, AWS, and Google Cloud.
The proceeds from its public flotation in New York will fund R&D, technology infrastructure, strategic investments and acquisitions, and general corporate purposes.
Qiniu has attracted a slew of big banks to its IPO. These include BofA Securities, UBS Securities LLC, Jefferies LLC, BOCOM International Securities Ltd., Futu Inc., and Tiger Brokers (NZ) Ltd.
The company expects to list its American depositary shares on the Nasdaq Global Select Market under the symbol "QNIU." The exact IPO target has yet to be specified.