Tuya Debuts on Wall Street Thursday in $915 Million IPO

The Chinese IoT platform virtually rings the opening bell on the NYSE today.
Mar. 18, 2021 22:40
Tuya Debuts on Wall Street Thursday in $915 Million IPO

Tencent-backed Tuya Inc. has raised $915 million in its initial public offering Thursday, set to launch in trading on the New York Stock Exchange at $21 per share, above the expected range.

The deal is the second-largest Chinese listing in New York this year, according to Bloomberg. Vaping giant RLX Technology Inc. (NYSE: RLX) holds top position with its $1.4 billion IPO of mid-January.

Tuya publicly filed for a U.S. IPO in late February as the Lunar New Year celebrations came to a close. At the time, the company placed $100 million as a placeholder for its offering size. Today, however, it sold 43.6 million American depositary shares above the expected range of $17 to $20 apiece.

The deal was secured by Morgan Stanley, Bank of America, and CICC.

Based in Hangzhou, Tuya offers Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) solutions to businesses and developers, aiming to help develop and manage smart devices and services. The company runs an IoT cloud platform connecting brands, original equipment manufacturers, partners and end users.

Tuya also boasts its open IoT cloud platform is "cloud agnostic" – not dependent on any single provider, and "seamlessly" integrates public or private cloud infrastructures such as Amazon Web Services, Microsoft Azure, and Tencent Cloud. Meanwhile, it addresses the needs of developers including "infrastructure support, operation and maintenance support, security and compliance monitoring, to data management, mainstream API access, end user application interfaces and industry-specific application-layer units."

For 2020, Tuya posted 70% year-over-year revenue growth to $179.9 million. Its losses narrowed slightly to $66.9 million in 2020 from $70.5 million in 2019.

Tuya is led by a team of co-founders who previously worked for the cloud unit of Alibaba Group (NYSE: BABA; HKEX: 9988). CEO Jerry Wang was a senior director at Alibaba and also founded PHPWind, one of the most popular open source forums in China acquired by Alibaba in 2008. Tuya's president, Leo Chen, and CTO, Ruixin Zhou, also come from PHPWind and Alibaba.