FinTech Content Platform 36Kr Seeks to Raise $100 Million in IPO

Founded in 2010, 36Kr provides industry and company overviews, investment and financial analyses, as well as macro data interpretation.

Anthony Russo
    Oct 01, 2019 11:50 AM  PT
FinTech Content Platform 36Kr Seeks to Raise $100 Million in IPO
author: Anthony Russo   

36Kr Holdings Inc. seeks to raise up to $100 million in an initial public offering in the United States.

The Beijing-based company, which provides content in business, science and technology, has filed with the U.S Securities and Exchange Commission on Monday to become publicly traded on the Nasdaq Global Select Market.

Founded in 2010, 36Kr provides industry forecasts, company overviews, investment and financial analysis, as well as macro data interpretation. Since its launch, more than 100,000 articles were published on its platform and helped about 30,000 companies gain exposure to hundreds of millions of people around the world, according to its website.

In addition, 36Kr provides online advertising services, enterprise value-added services and subscription services.

Serving enterprises in the New Economy, which use cutting-edge technology and innovation, 36kr said in its filing that the growth in the industry is "booming."

Citing a report from China Investment Corp. (CIC), 36Kr said that the market size in the New Economy industry grew from $7 billion to $20.2 billion from 2014 to 2018, which represents compound annual growth rate (CAGR) of 30.3%. The market size is expected to reach $55.6 billion in 2023, representing a CAGR of 22.5% from 2018, according to the CIC report.

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(Image: 36Kr)

36Kr said in its prospectus that its revenue in the second quarter reached $6.3 million, up 28% year-over-year. However, losses have more than doubled to $4.6 million from $2 million in the same period a year ago. In 2018, it had revenue of $43.6 million, up 148% from 2017. Net income for the year reached $5.9 million, up 411% year-over-year, according to the report.

36Kr said it plans to use 20% of the proceeds from its IPO to strengthen its content offerings and expand its business service scope, 40% to grow its client base and service depth, 15% to improve its data analytics and technological capabilities and invest 25% into its workforce and other general corporate purposes, according to its filling.  

36Kr's underwriters on the offering are Credit Suisse Securities (USA) LLC and China International Capital Corp. Hong Kong Securities Ltd.

This year, Chinese companies have raised $2.8 billion in IPOs this year, Bloomberg reported.