IPO | Zhihu-W launches dual listing in Hong Kong and will offer shares from April 11 to 14

News from Futu News on April 11, this Monday$ZHIHU-W (02390.HK)$ It was announced that it will issue 26 million shares from April 11 to 14. The company plans to issue 26 million shares, including 2.6 million shares for public sale and 23.4 million shares for international sale. The issue price per share does not exceed HK$51.8, and 100 shares per lot. It is expected to be listed on April 22.

Zhihu is a leading online content community. It was listed on the NYSE in March 2021. As of April 8, the US stock market closed.$Zhihu (ZH.US)$ Reported at $2.56 per share, with a total market value of $1,437 million.

According to Insight Consulting, based on average monthly active mobile users and revenue in 2019, 2020, and 2021, Zhihu is one of the top five comprehensive online content communities in China and the largest online Q&A community in the country.

In the fourth quarter of 2021, Zhihu's average monthly active mobile users reached 99.6 million, the average number of monthly visitors reached 500 million, and the average monthly user interaction reached 390 million. As of December 31, 2021, Zhihu has accumulated 55 million content creators and contributed 420 million Q&A content, covering more than 1,000 vertical fields.

In terms of financial data, during the track record period, the company achieved significant business growth, but generated net losses and net operating cash outflows, mainly due to content-related costs to help establish a rich content library, sales and marketing expenses for promotion and advertising campaigns, and R&D expenses to strengthen technical infrastructure.

From 2019 to 2021, the company recorded revenue of RMB 671 million, $1,352 million and $2,959 million respectively, with a compound annual growth rate of 110.1%; net losses of RMB 1,004 million, RMB 518 million and $1,299 million during the same period; adjusted net losses were RMB 825 million, RMB 337 million and RMB 751 million respectively.

On the industry side, China's online content market size (in terms of revenue) reached RMB 1.5 trillion in 2020, about three times that of 2016. It is expected to further increase to RMB 4.0 trillion in 2026, with a compound annual growth rate of 18.0% from 2020 to 2026. In China, online content consumption and willingness to pay have been increasing, making the online content market rapidly growing and growing ever larger.

The user base of China's online content market increased from 630.1 million in 2016 to 893.7 million in 2020, and is expected to further increase to 1.1 billion in 2026. The proportion of users in China's online content market in the Internet population increased from 86.2% in 2016 to 90.4% in 2020, and is expected to reach 92.7% in 2026.

In terms of fund-raising purposes, the company stated in its prospectus that the company will not receive any net proceeds from the global sale, and the selling shareholders will receive all net proceeds from the global sale.

102K Views