Meitu Inc., a photo retouch app developer backed by Qiming Venture Parnters, IDG Capital Partners and others, has completed offering 574 million shares priced at HK$8.50 apiece to raise net proceeds of approximately HK$4.688 billion (US$604 million).
The company, which had 446 million monthly active users at the end of June, said its shares are 2.39 times over-subscribed, and trading of its stocks will begin tomorrow on the Hong Kong Stock Exchange.
“Looking ahead, we will continue to roll out our strategic coverage in platformization, globalization and in building a social ecosystem, to deliver the greatest value to our investors and shareholders,” the company said in a statement today.
Meitu intends to use approximately 29% of the net proceeds to expand its component and raw material sourcing capacity, with a view to producing more smartphones and other smart hardware.
Approximately 22.6% will be used to invest in or acquire complementary businesses, and approximately 19.7% for implementing sales and marketing initiatives in both China and overseas markets.
Meitu will also use approximately 13.1% of the net proceeds to grow its Internet services business, and approximately 6.6% to strengthen its research and development capabilities. The remaining will be used for general working capital.
Founded in 2008 by Chinese entrepreneur Cai Wensheng, Meitu’s mobile apps allow users to edit photos for posting on social networking apps.
Meitu previously raised a total of US$501 million in five venture rounds from investors including Qiming Venture Partners, Sina Weibo, IDG Capital Partners, Keywise Capital Management, Foxconn Technology Group and Tiger Global Management.