Exits, IPO, Venture Capital

Fortune Capital-Backed Incubator And Media Firm Iheima Completes Shenzhen IPO

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Niu Wenwen, third from left, founded Iheima in 2011.

Beijing-based start-up incubator Iheima, backed by Fortune Capital, has completed an initial public offering on the ChiNext, a NASDAQ-style board of the Shenzhen Stock Exchange, to raise a total of RMB182 million (US$27 million).

As the first IPO of an incubator, accelerator and start-up media platform in China, Iheima issued 17 million new shares at the price of RMB10.75 (US$1.61) apiece, according to an IPO prospectus.

The company is valued at RMB1 billion (US$140 million), based on its highest trading price of RMB15.48 (US$2.3), which represents a near 44% increase from its IPO price.

Iheima was founded in 2011 by Niu Wenwen, formerly the editor-in-chief at well-known Chinese business magazine China Entrepreneur. The company offers a full suite of services to Chinese start-ups, from staff training, public relations services, to venture capital raising.

The company registered revenues and net profit of RMB184 million (US$27 million) and RMB42 million (US$6 million), up 10% and 446% year-on-year, respectively.

In 2015, Iheima raised a RMB134 million (US$20 million) series C round from Fortune Capital, Chinese outdoor products company Toread Holdings Group Co., Ltd. and Zhongziqi Investment. Two years prior, it received a series B round worth tens of millions of RMB from Beijing-based Internet company Youyou. In 2012, it completed a series A round worth tens of millions of RMB from Shanda Group.

Fortune Capital is the third largest shareholder of Iheima, behind founder Niu Wenwen and Chinese Lanchuang Media and Culture Company. Fortune Capital’s shares was diluted to 10.23% from 13.64% after the IPO.

Iheima plans to use the latest proceeds to establish more co-working spaces, as well as to improve its online business management systems.

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