TPG, Orchid-backed Duiba Raises $96.7m In HK IPO

Duiba, a Chinese enterprises solution provider backed by private equity firms TPG and Orchid Asia Group, raised HK$766.2 million ($97.6 million) by selling 127.7 million shares at HK6 apiece in its initial public offering (IPO) in Hong Kong.

The startup, founded in 2014, said the pricing represents the bottom end of the indicative range but the size of the offering was 16.7 million shares above its original plan of selling 111 million shares.

Duiba was trading at HK$6.23 a share at 4pm Wednesday, up 3.66 per cent from its trading debut.

In its filing, the startup said it will use the proceeds of the IPO to enhance and improve its user management SaaS solutions, upgrade its interactive advertising platform, undertake new business development activities, and enhance its research and technical capabilities.

Duiba submitted its prospectus in September 2018 with the Hong Kong Exchange (HKEx) less than a month after it raised $110 million in a funding round co-anchored by TPG and Orchid Asia.

Duiba Group provides solutions for companies to obtain and manage users on their apps. The company operates SaaS platform Duiba and interactive advertising platform Tui’a.

“Our SaaS platform offers various fun and engaging user management tools including reward points operation tools, marketing campaign tools and check-in tools to boost mobile app user activity and the time spent on apps,” the company said.

It began charging for user management SaaS solutions on a pilot basis in April 2018. As of June 30, 2018, Duiba said more than 12,000 mobile apps, including 118 mobile apps each with daily active users of over one million had registered with its user management SaaS platform, reaching more than one billion mobile app users.

Duiba continues to be bullish on the industry where it operates. According to iResearch, China’s mobile internet users increased at a compounded annual growth rate of 10.8 per cent from the end of 2013 to the end of 2017 and is expected to grow further to the end of 2022.

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