Edianyun Limited, a venture-backed Chinese provider of office IT services to enterprise clients, has renewed its application for an initial public offering (IPO) in Hong Kong in the firm’s third attempt to tap the city’s stock market.
The move came after the Beijing-based company first filed for a Hong Kong listing in February 2022 and then, for a second time, in September of the same year after the first application lapsed.
Edianyun embarked on its latest listing pursuit as Hong Kong’s capital markets are expected to recover with the end of the city’s COVID-19 mask mandate and the full reopening of its border with mainland China.
The market has already shown signs of recovery with the completion of 10 new listings in the first months of 2023, compared to seven in the same period last year, according to the latest data from Hong Kong Exchanges and Clearing Limited (HKEX), the city’s stock exchange operator.
Edianyun, which counts venture capital (VC) Source Code Capital as its biggest institutional investor before the planned listing, has yet to disclose how much it targets to raise in the IPO. In its latest private financing, the firm closed over 500 million yuan ($72.7 million) in a Series E round led by Source Code Capital in March 2021.
China-focused VCs Matrix Partners China and Koala Fund, smartphone brand Xiaomi’s founder Lei Jun-backed Shunwei Capital, and Singapore’s sovereign wealth fund GIC are among its key venture investors, according to the firm’s prospectus filed with the stock exchange.
Founded in 2014, Edianyun provides small and medium-sized enterprises (SMEs) with on-demand office IT solutions, sales of devices, as well as software-as-a-service (SaaS), and other services.
Its current main revenue generator is the provision of office IT devices, such as desktops, laptops, and monitors pre-installed with operating systems and selected software, as well as IT management services including device configuration and maintenance.
The firm posted a 15.9% increase in its 2022 revenue to almost 1.4 billion yuan ($203.5 million), according to its prospectus. It booked adjusted net profits of about 93.5 million yuan ($13.6 million) in 2021 and 135.2 million yuan ($19.6 million) in 2022, versus an adjusted net loss of 44.5 million yuan ($6.5 million) in 2020.
China International Capital Corp Ltd (CICC), a partially state-owned financial services group, serves as the sole sponsor of the IPO.