Business

China-based Tuya raised $915M in its IPO in the United States

chinabased tuya iot 915m 14b

Tuya Inc., a Chinese software company backed by New Enterprise Associates and Tencent Holdings, raised USD 915 million in its initial public offering in the United States, priced above its marketed range.               

A cloud computing company called Tuya, founded in 2014, specialises in managing multiple smart devices. According to the agreement obtained by Bloomberg News, the corporation set a price of US$21 per share for the sale of 43.59 million American depositary shares. Tuya sold the shares for between $17 and $20 each.

According to Bloomberg reports, the listing, which garnered US$915 million, is the second-largest U.S. IPO by a Chinese company this year, after RLX Technology Inc. raised US$1.6 billion in January.              

Based on the outstanding stock disclosed in its filings with the U.S. Securities and Exchange Commission, the shares, each represents one Class A Common Share, would give the company a market value of US$11.8 billion.         

As per the company’s filings, businesses use its cloud computing platform to deploy, connect, and manage numerous different types of smart devices. According to Tuya, the IPO profits would support other general business goals, investments in R&D, infrastructure, and technological advancements.               

On $180 million in revenue, Tuya experienced a net loss of 67 million US dollars in 2020. China International Capital Corp., Bank of America Corp., and Morgan Stanley took the lead in the offering. On the New York Stock Exchange, the shares are projected to begin trading under the ticker name TUYA.

In its SEC filing paperwork, Tuya also mentioned its net loss as a risk concern. Also, the company admitted that its primary source of revenue is dependent on a small number of key customers. Moreover, the company has a history of net losses and “may be unable to achieve or sustain profitability in the future.” Tuya announced a partnership with Turkish LED bulb producer LEDOLET to expand in Turkey’s intelligent lighting market six days before its IPO in the United States. Also, In the last month, the company announced that it would provide technical support for smart home applications with its business partners in Ukraine, Italy, and other European countries. 

Read More:- Gretel Announces $12M Funding In Series A, To Make It Easier To Anonymize

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