Beijing-based Chinese security software maker Cheetah Mobile Inc. says three Chinese Internet companies are to subscribe a total of US$50 million shares before its planned U.S. IPO, according to a company announcement.
Chinese Internet search engine Baidu Inc., software company Kingsoft Corporation and Chinese smartphone maker Xiaomi Inc. have agreed to subscribe Cheetah’s shares at its IPO price, which is to be set between US$12.50 to US$14.50 apiece.
The three companies’ US$50 million commitment is to help push forward Cheetah’s U.S. IPO, after its IPO size was cut by over one third to US$174 million from US$300 million.
The companies are all tightly connected. Cheetah Mobile was formerly known as Kingsoft Internet Software Holdings Limited, and was a unit of Kingsoft.
Kingsoft already owns 54.1% of Cheetah. Xiaomi’s founder, Lei Jun, was formerly president and CEO of Kingsoft.
Kingsoft will subscribe up to US$10 million of Cheetah’s shares. Baidu and Xiaomi will each subscribe up to US$20 million.
Cheetah Mobile initially filed its F-1 form with the U.S. Securities and Regulatory Commission on April 2. It filed an amended version on April 22, and submitted its pricing details on April 25.
Besides Kingsoft, venture investor Matrix Partner China and Tencent Holdings Ltd. owns 6.3% and 18% of Cheetah, according to Cheetah’s securities filings.
Cheetah Mobile is the number two Internet security software provider in China, with 341 million total monthly active users, says the filing.
The company will list on the New York Stock Exchange under the ticker symbol "CMCM".