<article><a style="color: #000080;" href="https://www.dealstreetasia.com/tag/alibaba">Alibaba</a>-backed online parenting platform Babytree made its trading debut in Hong Kong on Tuesday after raising HK$1.6 billion ($205 million) in a downsized IPO.</article>

<a style="color: #000080;" href="https://www.dealstreetasia.com/tag/alibaba">Alibaba</a>-backed online parenting platform Babytree made its trading debut in Hong Kong on Tuesday after raising HK$1.6 billion ($205 million) in a downsized IPO.
The firm sold 250.3 million shares, including a 225.3-million-unit international offer and a 25-million-unit Hong Kong offer, at the low end of its marketing range at HK$6.80 apiece, according to its regulatory filing.
The Hong Kong public offering was slightly oversubscribed at 1.18 times, Babytree said.
At the time of publishing, the stock was trading at HK $6.6. Its market cap of HK $11.11 billion ($1.4 billion) is a significant drop from its $2.19-billion valuation in June this year after it received an unspecified strategic investment from Alibaba’s Taobao China.
According to PitchBook, 11.8 per cent of all deals involving venture capital this year have suffered down rounds.
Babytree said it will use 30 per cent each from the net proceeds for business expansion, R&amp;D, and future investments and M&amp;A and strategic alliances. The rest will be earmarked for working capital and other general corporate purposes.
Taobao China fully exercised its anti-dilution option to purchase and subscribe to nearly 24.8 million shares at the offer price, Babytree said. Upon completion of the subscription, the e-commerce company will continue to directly hold approximately 9.9 per cent stake in Babytree.
The three largest public shareholders do not hold more than 50 per cent of the offer shares held in public hands at the time of the listing, according to the filing. Public shares account for 49.04 per cent of Babytree’s total issued share capital.
In addition to Alibaba, Babytree&#8217;s other investors include <a style="color: #000080;" href="https://www.dealstreetasia.com/tag/fosun-international/">Fosun International</a> and K-12 tutorial service provider TAL.
The Chinese firm was initially expected to raise up to $1 billion via the listing. However, weak markets forced it to slash the IPO size.
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<a href="https://www.dealstreetasia.com/stories/alibaba-babytree-hk-ipo-2-111586/">Alibaba-backed Babytree said to scrape bottom of the barrel with Hong Kong IPO</a>

The Chinese firm was initially expected to raise up to $1 billion via the listing. However, weak markets forced it to slash the IPO size.

Alibaba-backed online parenting firm Babytree raises $205m in IPO

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Alibaba-backed online parenting firm Babytree raises $205m in IPO

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