Chinese women’s health app Meet You files for $267m ChiNext IPO

Source: Unsplash

Meet You, a Chinese company that operates a mobile app for women’s health management, has filed a prospectus for an initial public offering (IPO) on Shenzhen’s ChiNext board to raise 1.87 billion yuan ($267 million).

Xiamen-based Meet You, which intends to sell up to 13.34 million ordinary shares through the IPO, previously inked a pre-listing tutoring agreement with Chinese investment bank Huatai United Securities (HTSC) in November 2019, with an aim to float shares on Shanghai’s Nasdaq-style STAR Market.

It had initially targeted to go public in the U.S. until it dismantled the variable-interest entity (VIE) structure in 2016 and started looking for an option closer to home.

The VIE structure refers to a legal business structure in which an investor has a controlling interest despite not having a majority of voting rights. The structure, which is widely used by overseas-listed Internet firms including Alibaba, Tencent and Baidu, enables companies to attract foreign investors while circumventing Beijing’s restrictions on foreign direct investment.

Meet You’s IPO development comes after Beijing introduced a registration-based IPO procedure for the ChiNext board earlier this year in an attempt to make the domestic capital market more appealing to technology enterprises.

The registration-based listing system, which was first adopted on the STAR Market in 2019, already attracted 340 companies to apply for an IPO on the ChiNext board as of July 31, according to official statistics.

The IPO will also pave the way for the exit of Meet You’s investors like Matrix Partners China, and China Renaissance’s K2VC. In its latest financing, the company garnered 1 billion yuan ($143 million) in a Series E round of financing in 2018, shows the company website.

Founded in 2013, Meet You operates several mobile apps that offer a wide range of women’s health management functions including period cycle, intimacy and ovulation trackers, pregnancy care, parenting knowledge, female-focused social networking, as well as an e-commerce platform for infant and maternal products. It recorded a total of more than 250 million users across all platforms by the end of 2019.

Meet You booked 616 million yuan ($88 million) in revenue in 2019, representing a compound annual growth rate (CAGR) of 20.7 per cent from 515 million yuan ($74 million) in 2018 and 423 million yuan ($61 million) in 2017, according to its prospectus.

Its net profit decreased 16.3 per cent to 123 million yuan ($18 million) in 2019 from 147 million yuan ($21 million) one year earlier.

The company will use the proceeds from the IPO for the upgrade of its technological R&D platform, improvement of e-commerce services, and expansion of female content and products, among others.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.