Sequoia-backed Chinese cloud tech firm Yuntongxun weighs $500m IPO

REUTERS/Fabrizio Bensch/Files

Chinese cloud communications company Beijing Ronglian Yitong Information Technology Co., also known as Yuntongxun, is weighing an initial public offering that could raise as much as $500 million, people with knowledge of the matter said.

The Beijing-based firm is working with Citigroup Inc. and Goldman Sachs Group Inc. on the share sale and aims to list as soon as the first half of this year, the people said, asking not to be identified as the matter is private.

The startup, which counts Sequoia Capital China among its early investors, is considering potential venues for the IPO including the U.S. and Hong Kong, but no final decision has been made, the people said.

Deliberations for the IPO are ongoing, and details such as timing and size may change, the people said. Representatives for Citigroup and Goldman Sachs declined to comment, while a representative for Yuntongxun didn’t immediately respond to requests for comment.

Yuntongxun is a cloud-based communication platform and service provider, with clients including Bank of China Ltd., China Merchants Securities Co. and Ping An Insurance Group Co., according to its website. The company has more than 1,000 employees in locations across China as well as in Tokyo.

It announced in November that it raised $125 million in a series F funding round, led by China’s state-owned Capital Venture Investment Fund, as well as New Oriental Industrial Fund, Mirae Asset, Parantoux Capital and CloudAlpha, according to the website.

Bloomberg 

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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.