Chinese gaming company iDreamSky seeks $300 million Hong Kong relisting

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.