(Yicai Global) May 9 -- Kingsoft Office Software, the firm behind mobile browser Cheetah and headed up by Xiaomi founder Lei Jun, aims to raise CNY2.1 billion (USD302.2 million) in a listing on the upcoming Shanghai tech board.
The Shanghai Stock Exchange has accepted the Beijing-based firm's application, according to a statement, marking the seventh firm linked to the Xiaomi chief that will go public on the new index.
The company will use the proceeds to revamp its WPS Office word-processing suite and to build a basic research and development center focused on artificial intelligence as well as to develop internet cloud services and office software internalization, according to its prospectus.
Kingsoft will issue up to a maximum of 101 million shares equivalent to 21.9 percent of total stocks upon listing, according to its prospectus. Stocks post-issuance will total 461 million shares at most.
Kingsoft will split the ordinary shares of its Beijing office software unit and list it independently on the sci-tech board, the firm said in a statement on April 30. Kingsoft holds 67.5 percent of Kingsoft Office Software's total shares, while Lei enjoys leading voting rights of 25.7 percent.
The enterprise boasts a strong customer base, serving 69 of China's 120 companies on the Global 500 and 82 of the 96 key state-owned firms in the country.
Despite its far reach, profits have declined in recent years and it posted an asset-liability ratio of 13.6 percent at the end of 2018. The firm posted CNY1.1 billion, CNY753 million (USD111.0 million), CNY542 million in operating revenues over the last three years, respectively, while net profit was CNY311 million, CNY210 million and CNY130 million.
The firm paid out CNY180 million and CNY20 million in cash dividends in 2017 and 2018, respectively. R&D investment over the last three years has equated to 35 percent of the operating revenue.
Editor: William Clegg