WiMi Amends Terms of Forthcoming Nasdaq IPO
The holographic AR services provider is pursuing an IPO despite the challenging market climate
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Jennifer Chan
Mar 23,2020,09:17

WiMi Hologram Cloud Inc., an AR services provider, has updated the terms of its initial public offering in New York, reducing the price range for its shares but raising their number.

The Beijing-based company is offering 5 million American depositary shares at the price range of $5.50 to $7.50 apiece. Reduced from the prior targeted range of $7.50 to $9.50 per ADS for 4 million shares, the deal would still raise WiMi $37.5 million, about the same.

Underwriters may acquire an additional 750,000 of WiMi's ADSs to cover over-allotments.

Founded in May 2015, WiMi caters to clients in the advertisement and entertainment fields, delivering "innovative, immersive and interactive holographic augmented reality experience." It was the largest holographic AR application platform in China in terms of revenue in 2018, according to market analytics firm Frost & Sullivan, as cited in WiMi’s prospectus.

The company also said it has the largest portfolio of holographic AR content, which counted 4,654 holograms as of June 2019. WiMi also holds 214 software copyrights and 132 registered patents, according to its filing with the U.S. Securities and Exchange Commission.

For 2018, the company reported operating revenue of $32.8 million, at a 17% increase from the preceding year, on $13 million in profit. For the six months through June 2019, WiMi posted operating revenue of $23.1 million on income of $11.5 million.

WiMi said it intends to use the proceeds from its IPO to boost holographic R&D, as well as for strategic acquisitions and investments and general purposes.

The offering is secured by The Benchmark Company LLC, Maxim Group LLC, China Merchants Securities (HK) Co. Ltd, AMTD Global Markets Ltd., BOCI Asia Ltd., Valuable Capital Ltd., and Axiom Capital Management Inc. China Everbright Securities (HK) Ltd. has exited the deal.

WiMi seeks to become publicly traded on the Nasdaq Global Market under the symbol "WIMI.” It anticipated to lift off in trading in August 2019, but the deal was postponed.

The last IPO celebrated in New York by a Chinese company took place in mid-February amid the coronavirus outbreak in China. Now, China seems to have recovered, but COVID-19 is wreaking havoc in the United States and globally, plunging capital markets and fueling investor fears.


Topics :WiMi Drops Price Range for Nasdaq IPO Amid Investor Uncertainty
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