APAC IPOs & Placements

Zhen Zhou, Toh

Smartkarma

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Aurora Mobile Ltd / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/27264" target="_blank" data-smartkarma-citation="entities:27264:1">Aurora Mobile Ltd (JG US)</a> (Jiguang, 极光) is looking to raise up to US$145m in its upcoming IPO. Proceeds will be mainly used to invest in technology, infrastructure, research, and development as well as for general corporate purposes.
Jiguang is a mobile big data solutions platform in China. Overall, we like the company's business model and how it has been able to monetize over such a short period of time but we are concerned about the tough competition in the ad tech space and the company's ability to further monetize other vertical data solutions. 
Between the April 2018 transaction and the IPO valuation, the company's valuation jumped more than 2x. Considering that revenue in 1H FY2018 is already higher than FY2017 and our assumptions imply a 149% revenue growth, the valuation jump does not seem too out of this world.
In this insight, we will be looking at the company's revenue drivers, examine China's competitive landscape and run the deal through our ECM framework.

Aurora Mobile Ltd (JG US) (Jiguang, 极光) is looking to raise up to US$145m in its upcoming IPO. Proceeds will be mainly used to invest in technology, infrastructure, research, and development as well as for general corporate purposes.
Jiguang is a mobile big data solutions platform in China. Overall, we like the company's business model and how it has been able to monetize over such a short period of time but we are concerned about the tough competition in the ad tech space and the company's ability to further monetize other vertical data solutions. 
Between the April 2018 transaction and the IPO valuation, the company's valuation jumped more than 2x. Considering that revenue in 1H FY2018 is already higher than FY2017 and our assumptions imply a 149% revenue growth, the valuation jump does not seem too out of this world.
In this insight, we will be looking at the company's revenue drivers, examine China's competitive landscape and run the deal through our ECM framework.

Jiguang (极光) IPO Review - Facing Competition in All Lines of Business