Ming Yuan Cloud Group is about to go public.
The Shenzen-based proptech firm plans to launch an initial public offering later this month, making it the first software-based Chinese proptech firm to debut on the Stock Exchange of Hong Kong this year, according to the South China Morning Post. Ming Yuan Cloud started taking share orders this week and trading is scheduled to begin on September 25.
The company aims to raise up to $797 million by selling 374.2 million shares (representing 20 percent of its share capital) at between HK$15 to HK$16.5 per share, or roughly $1.93 to $2.13. It has already secured commitments from six institutional investors — including Singapore’s sovereign wealth fund, BlackRock, Sequoia Capital and Fidelity International — for shares worth $276 million total. The company has the option to sell 56.13 million additional shares.
While the firm sells products to domestic Chinese property firms, the Hong Kong offering allows it to tap investors from outside the country. Ming Yuan Cloud plans to use proceeds from the offering to hire new employees and to upgrade its cloud-based software, according to SCMP.
Wanda Group and China Overseas Land & Investment are among the 3,000 or so property owners that use Ming Yuan Cloud products. The firm sells virtual reality tour software, increased use of which has helped offset a loss of revenues from other sources brought on by the coronavirus pandemic this year, the company said.
So far this year, 90 companies have raised more than $22.5 billion on the Hong Kong Stock Exchange, more than double the amount raised on the exchange last year. [SCMP] — Dennis Lynch