China’s Meitu Eyes A Too-Pricey IPO
Friday, August 26, 2016
(Forbes by Yue Wang) – China’s most popular photo touch-up app maker Meitu’s planned listing might be the next big tech IPO in Asia. However, the Xiamen-based firm will have to do more to convince investors it’s able to turn around its loss-making business model.
Meitu has filed for an initial public offering in Hong Kong. The firm is preparing to raise at least $500 million in an IPO later this year, hoping to achieve a valuation of $5 to $6 billion, a person with knowledge of the matter told Forbes Asia. That would make Meitu the second-largest technology IPO globally this year, after Japanese messaging app Line, which raised $1.3 billion through a dual listing in New York and Tokyo in July.
Following a financing round completed in April, Meitu has been valued at $3.7 billion. It has also won over a list of powerful backers: Venture capital firms IDG, Qiming and Tiger Global have all invested in Meitu.
