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Briefing: Alibaba-backed parenting firm Babytree raises $200 million in Hong Kong IPO
母婴社区宝宝树今日在港挂牌上市 每股6.8港元 -NetEase
What happened: China’s leading online parenting firm Babytree Group, has raised around $200 million in Hong Kong IPO at the lower range of its initial offering price of HK$6.8 per share. The company’s share started trading at HK$6.91 apiece, up 1.62%, bringing the company’s market cap to HK11.53 billion ($1.47 billion).
Why it’s important: Suffering from the huge amount of new offerings and a depressed stock market, Babytree was forced to downsize its IPO by nearly 80%, from the initial target of $1 billion to around $200 million. Babytree’s investors include conglomerate Fosun International, TAL Education Group, e-commerce platforms of Jumei and Alibaba Group. In the company’s pre-IPO round, Alibaba acquired a 9.9% stake in the company for $214 million at a valuation of $2.16 billion.