Qiniu Intelligent (02567.HK) commenced its IPO on September 30, with subscriptions open until October 10. The company plans to issue 160 million shares globally, priced between HKD 2.74 and HKD 2.86 per share. Each lot consists of 1,000 shares, requiring a minimum investment of approximately HKD 2,888.8. The company aims to raise up to HKD 460 million, with the listing expected on October 16.

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IPO Details

Qiniu Intelligent (02567.HK) opened its subscription on September 30, and it will remain open until October 10. As the third-largest audio and video PaaS service provider in mainland China, and partially owned by Alibaba Group (09988.HK), Qiniu Intelligent plans to issue 160 million shares globally. Of these, 10% will be offered publicly in Hong Kong, while the remaining 90% will be offered internationally. The shares are priced between HKD 2.74 and HKD 2.86 each, with a lot size of 1,000 shares and a minimum investment requirement of HKD 2,888.8 per lot. The company aims to raise up to HKD 460 million, with the listing expected on October 16. Shenwan Hongyuan Hong Kong and CMB International are serving as joint sponsors.

Company Overview

According to the prospectus, Qiniu Intelligent, founded in 2011, is one of the earliest platforms providing cloud-based audio and video services in China. The company seeks to become a global leader in offering one-stop intelligent audio and video services tailored to specific scenarios. It primarily provides Media Platform as a Service (MPaaS) and Application Platform as a Service (APaaS) solutions. Qiniu is one of the few companies in China capable of developing comprehensive, high-performance MPaaS products, with integrated technical expertise across the entire audio and video business spectrum. Furthermore, according to iResearch, Qiniu Intelligent accounted for 1.5% of the total cloud-based audio and video services market in 2023. Based on revenue, the company ranked as the third-largest audio and video PaaS provider in China in 2023, with a 5.8% market share. Additionally, it held the second-largest share in the audio and video APaaS market, with a 14.1% market share. In 2023, the total market size of China's cloud services industry reached RMB 513.7 billion.

Financial Data

The prospectus reports that Qiniu Intelligent’s operating revenue was RMB 1.471 billion in 2021, RMB 1.147 billion in 2022, RMB 1.334 billion in 2023, and RMB 342 million for the first quarter of 2024. Meanwhile, the company posted net losses of RMB 220 million, RMB 213 million, RMB 324 million, and RMB 148 million during these periods, respectively. Moreover, adjusted net losses for the same periods were RMB 106 million, RMB 119 million, RMB 116 million, and RMB 24 million.

Qiniu Intelligent plans to allocate approximately 38% of the net proceeds from the IPO to increasing market penetration and strengthening its presence in APaaS applications, while also expanding its customer base. Additionally, approximately 20% will be used to expand its overseas business, 12% will be allocated to enhance R&D capabilities and improve technological infrastructure, 20% will be used for selective mergers, acquisitions, and strategic investments, and finally, 10% will be reserved for general corporate purposes and working capital.

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