(Yicai Global) March 16 -- Shares of QingCloud Technologies rallied on the corporate cloud computing software developer's first trading day on Shanghai's Star Market.

QingCloud's stock price [SHA:688316] jumped as much as 53.8 percent to CNY98 (USD15.10) this morning. After that, it was 38.2 percent up by 10.50 a.m. and its market cap was CNY4.2 billion (USD646.1 million). The initial public offering price was CNY63.7 apiece.

The infrastructure-as-a-service-based platform operator issued 12 million shares to raise CNY760 million (USD117 million) in the IPO on the Nasdaq-style technology and growth stock board.

Formed in 2012, Beijing-headquartered QingCloud offers cloud computing services for corporate clients in sectors including finance, transport, healthcare, energy, and manufacturing.

QingCloud will use the proceeds of the listing to upgrade its cloud computing products, boost research and development, as well as infrastructure construction projects, according to its prospectus published on March 9.

In the next two to three years, the firm aims to expand from first-tier cities to other major municipalities such as provincial capitals in China while providing services to more small and medium-sized enterprises.

QingCloud is not yet profitable. Last year, its net loss widened to CNY169 million after deducting nonrecurring losses and gains, up from CNY139 million in 2019. In the first quarter of 2021, its net loss should tally between CNY57.2 million and CNY59.2 million (as much as USD9.1 million), higher than a year ago.

Once the company exceeds the threshold of CNY1.3 billion (USD200.1 million) in revenue, it can break even, according to the prospectus. In 2020, its revenue was CNY429 million, up from almost 14 percent from 2019. Its prediction for the first quarter of 2021 falls between CNY70.8 million and CNY76.8 million, up from a year earlier.

Editor: Emmi Laine, Xiao Yi