Venture-Backed iDreamSky Completes $116M US IPO

Shenzhen-based mobile game publishing platform iDreamSky Games has completed an IPO on the NASDAQ, raising a total of US$116 million, exceeding its previous expectations, according to an official announcement issued by the NASDAQ.

China’s largest independent mobile game publishing platform sold 7.7 million American Depositary Receipts (ADR) at US$15 apiece, above its indicative pricing range between US$12 and US$14.

iDreamSky has raised 15% more proceeds than expected and now commands a fully diluted market capitalization of US$695 million and an enterprise value of US$540 million.

Chinese Internet services giant Tencent, Beijing-based Chinese security software maker Cheetah Mobile and Japanese communication app developer LINE are purchasing US$15 million, US$8 million and US$3 million respectively, in a concurrent private placement at the IPO price.

The company previously received US$10 million investment from Legend Capital and Redpoint Ventures in 2012.

Prior to the IPO, Tencent is already iDreamSky Games’ largest shareholder with a 26.6% stake. Legend Capital holds 20.4% and Redpoint owns 16.6%.

Founded in 2009, iDreamSky is the largest mobile game publishing platform in China, with monthly active users for the first quarter of 2014 reaching 98.3 million.

Caishen.Co - Primary Data for China Secondary Investment and Stock Markets