IPO | Graffiti Smart-W will start offering shares now and is expected to go public on July 5

Futu News, June 22, this Wednesday$TUYA-W (02391.HK)$The announcement was announced that it will issue 7.3 million shares from June 22 to June 27. The company plans to issue 7.3 million shares, including a public sale of 730,000 shares and an international sale of 6.57 million shares, with an issue price of no more than HK$22.80 per share and 200 shares per lot. It is expected to be listed on July 5.

According to the prospectus,Graffiti Intelligence has established the world's first IoT cloud development platformThis makes Graffiti Intelligence have many first-mover advantages in the global IoT PaaS field. According to Insight Consulting, in May 2015, Graffiti Intelligence established an IoT cloud development platform, ahead of major competitors in the global IoT PaaS industry. Graffiti Intelligence was listed on the New York Stock Exchange in March 2021. As of June 22, EST, the US stock market closed.$Tuya Inc (TUYA.US)$Reported at US$2.46 per share, with a total market capitalization of US$1,405 billion.

Graffiti Intelligence provides various services through the company's IoT cloud development platform. Graffiti Intelligence's IoT Platform as a Service (PaaS) helps brands, OEMs, and developers develop, launch, manage and monetize smart devices and services. Graffiti Intelligence's industry software-as-a-service (SaaS) products help enterprises deploy, connect, and manage a large number of different types of smart devices. Graffiti Intelligence also provides a variety of cloud-based value-added services to enterprises, developers, and end users to enhance their ability to develop and manage IoT experiences.

Through Graffiti's intelligent IoT cloud development platform, developers can activate the IoT ecosystem composed of brands, OEMs, partners and end users to interact and communicate through a wide range of smart devices.

In terms of financial conditions, the company's total revenue from 2019 to 2021 was US$106, 180, and 302 million, respectively, with a compound growth rate of 68.98% from 2019 to 2021; net losses for the same period were US$0.70, 0.67, and 175 million, respectively.

On the industry side, according to Insight Consulting, shipments of smart home and smart business-related devices reached 1,129 million units in 2021, and are expected to increase to 1,900 billion units in 2026, with a compound annual growth rate of 10.50%; shipments of smart industry-related equipment reached 572 million units in 2021, and are expected to increase to 130 billion units in 2026, with a compound annual growth rate of 18.50% from 2021 to 2026.

In 2021, the average penetration rate of IoT-enabled devices in total incremental equipment shipments for home and commercial operations was 5.70%, and is expected to increase to 8.10% in 2026. In 2021, the average penetration rate of IoT-enabled devices in total incremental equipment shipments related to industrial operations was 13.30%, and is expected to increase to 22.00% in 2026.

In terms of financing, the net proceeds of the company were approximately HK$95 million, after deducting underwriting commissions, fees and estimated expenses payable in connection with the global offering, and based on the indicative offer price of HK$22.80 per share of the Hong Kong public offering and international offerings, and assuming that the over-allotment rights were not exercised. According to the prospectus, the company intends to use the net proceeds from the sale of shares for the following purposes:

About 30% is used to enhance IoT technology and infrastructure; about 30% is used to enhance product supply; about 15% is used to improve sales and marketing; about 15% is used to seek strategic partnerships, investments and acquisitions; and about 10% is used for operating capital and others.

64K Views