Online media publisher 36KR cuts Nasdaq offer deal size to US$22m

Business | 8 Nov 2019 10:40 am

Online media publisher, 36KR Holdings,  on Thursday proposed terms for its upcoming initial public offering on the Nasdaq stock market.

The company, focused on New Economy companies in China, lowered the proposed deal size.

Nasdaq said it now plans to raise US$22 million by offering 1.4 million American Depositary Shares at a price range of US$14.50 to US$17.50 to command a market cap of US$641 million.

Insiders still intend to purchase US$20 million worth of shares in the offering (91 percent of the deal).

The company had previously filed to offer 3.6 million ADSs at the same range to command a market cap of US$676 million. At the midpoint of the revised range, 36KR Holdings will raise US$36 million less in proceeds than previously anticipated, Nasdaq said.

The company has applied for listing under the symbol KRKR.

It has granted the underwriters a 30-day option to purchase up to an additional 207,000 ADSs at the IPO price.

Its main shareholders, such as Krystal Imagine Investments, a wholly-owned subsidiary of Didi Chuxing, and Red Better, a wholly-owned subsidiary of Xiaomi, have shown interest in buying a total of up to US$20 million of the ADSs offered in the IPO, according to the prospectus.

Founded in 2010, the Beijing-based firm not only offers news contents on tech companies, but also provides business services, including online advertising services, enterprise value-added services and subscription services to customers.

Revenue grew to US$29.4 million  for the six months ended June 30, up 178.7 percent compared to the same period of last year, the majority of which was generated from online advertising services.

Credit Suisse, China International Capital Corporation and AMTD Global Markets are the joint bookrunners on the deal.-Xinhua/The Standard. Photo: Fintech News HK


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