Chinese gaming company iDreamSky seeks $300 million Hong Kong relisting

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iDreamSky, the Shenzhen based mobile game developer notably responsible for the development of popular titles “Temple Run” and “Subway Surfers”, is planning to relist on Hong Kong stock exchange market in a deal that could raise around $300 million.

iDreamSky Technology is one of China’s largest independent mobile game publishing and developing platforms in China. Founded in 2009, company first prospered as a game publisher that helps well-known international mobile game developers to gain access to China market. The company distributes these games through both its proprietary distribution channels and third-party channels, such as app stores and device pre-installations. The company is also moving forward with in-house game development in recent years.

After getting listed on the Nesdaq market in 2014, the company joined the flock of US-listed mainland companies that have been re-listing on the A-share market, which has been recording a bull run since early 2015. After filling in the privatization offer in June 2015, the company got delisted from the US market on September 7th, 2016.

The company has generated a revenue of RMB 1.76 billion ($275 million) with profit hitting RMB 151.9 million in 2017. It’s monthly active users surpassed 1.24 million in Q4 2017, up 20% YOY, according to the company prospectus.

As the largest shareholder in the company, Tencent holds a 20.65% stake through its wholly-owned company Tencent Mobility Limited. In addition, the company has attracted several celebrity investors such as Wang Sicong, the only son of China’s richest man Wang Jianlin, and Leong On-kei, Macau billionaire businesswoman and the fourth “wife” of Macau tycoon Stanley Ho.