Xiaomi-backed robotic cleaning appliances provider Beijing Roborock Technology Co., Ltd (Roborock) is seeking to raise 4.5 billion yuan ($649 million) in an initial public offering (IPO) on Shanghai’s Nasdaq-like STAR Market.
Roborock will offer as many as 16.67 million common shares at 271.12 yuan ($39) apiece to seek a market cap of 3.05 billion yuan ($438 million), according to a company filing on Wednesday. Its listing price of 271.12 yuan per share is the highest issue price on the A-share market since 2010.
CITIC Securities is the principal underwriter of the deal. Roborock will float its shares under “688169.”
Roborock designs and sells smart home cleaners and other cleaning appliances. It secured funding from Xiaomi in 2014 and launched its first product, Mi Home Robotic Vacuum Cleaner, in 2016. Its second product, Roborock Robotic Vacuum Cleaner, was launched in 2017 after crowdfunding over 10 million yuan in four hours.
According to its prospectus, Roborock generated 3 billion yuan ($435 million) in revenue in the first nine months of 2019, up 43.46 per cent year on year, and 582 million yuan ($84 million) in net profit, up 236.13 per cent.
Roborock said it will deploy IPO proceeds in next-generation robotic home cleaner projects, commercial-based cleaning products, and intelligent data analytics.
Xiaomi owns a 24.6 per cent stake in Roborock through it venture arm Shunwei Capital and Tianji Jinmi Investment. Other investors include Gaorong Capital (6.74 per cent stake) and Qiming Venture Partners (5.85 per cent).