Ming Yuan Cloud Group, plans to launch an initial public offering later this month, making it the first software-based Chinese proptech firm to debut on the Stock Exchange of Hong Kong this year. The tech company started taking share orders this week and trading is scheduled to begin on September 25, according to the South China Morning Post.
- Who’s in: For the IPO, the company has already secured $276 million from six prominent investors: Hillhouse has subscribed for $86 million worth of stock; Singapore’s GIC and China Structural Reform Fund will take $50 million each; and private equity fund Sequoia, BlackRock and Fidelity International will each take $30 million.
- Upbeat revenue outlook in spite of Covid-19: Although the pandemic negatively affected its software licensing business, the tech company has seen an increased use of virtual reality tours by property agents and other customer relationship management cloud services.
- Worth Noting: Ming Yuan said that last year it served 3,000 property developers, and 99 of them collectively contributed 42 per cent of its total revenue. Some of its clients include Wanda Group, Shimao, Agile, Sunac and China Overseas Land & Investment. By 2024, the market for proptech software solutions in China is forecast to grow 65.5 billion yuan, from 17 billion yuan in 2019, according to data from Frost & Sullivan. [SCMP+CNBC]