Venture-Backed Cheetah Mobile Completes $168M IPO

Beijing-based Chinese security software maker Cheetah Mobile Inc. has raised $168 million on the New York Stock Exchange at US$14 per share, within its previously announced range.

The company sold 12.0 million American Depository Shares (ADS). It now has a fully diluted market cap of around US$2.1 billion.

In late April, Chinese Internet search engine Baidu Inc., software company Kingsoft Corporation and Chinese smartphone maker Xiaomi Inc. all agreed to subscribe a total of US$50 million Cheetah’s shares at its IPO price, after the company decided to downsize its IPO to around 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.

Besides Kingsoft, venture investor Matrix Partner China and Tencent Holdings Ltd. each 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.

China Expert network
 
China Expert network

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