Chinese mobile big data solutions platform Aurora Mobile raised $77 million in its initial public offering in the US, pricing its 9.06 million American Depositary Shares (ADS) at $8.50 a share.
The ADS, priced at the low end or range, trade on the Nasdaq under the ticker symbol JG. Goldman Sachs (Asia), Credit Suisse Securities (USA), and Deutsche Bank Securities Inc. acted as joint bookrunners for the IPO.
Aurora Mobile originally was planning to raise up to $145 million by pricing 9.2 million ADS at a maximum $15.75 a share, according to its US SEC filing dated July 13.
Founded in 2012, the company said proceeds from the IPO will mainly be used to invest in technology, infrastructure and research and development capabilities as well as the balance for general corporate purposes.
Aurora Mobile said it has offered its suite of services to approximately 318,000 mobile app developers in industries ranging from media, entertainment and gaming to financial services, tourism, e-commerce, education, and healthcare, as of March 31, 2018.
“Our developer services easily integrate with all types of mobile apps and provide core in-app functionalities needed by developers, including push notification, instant messaging, analytics, sharing and short message service (SMS),” the company said.
It claims to have reached approximately 864 million monthly active unique mobile devices, accounting for approximately 90 per cent of mobile device coverage in China in December 2017. This number further increased to 925 million by March 2018.
Financially, Aurora Mobile said it generates revenue primarily from its data solutions. Its net loss margin improved from 87.3 per cent in 2016 to 31.7 per cent in 2017, and from 68.8 per cent in the three months ended March 31, 2017 to 17.5 per cent in the three months ended March 31, 2018.
Mobile internet penetration in China has grown substantially over the past few years. According to Frost & Sullivan, the number of mobile internet users in China grew from 619.8 million in 2015 to 752.7 million in 2017.