Chinese Maker of TouchPal Keyboard CooTeck Lowers US IPO Target To $57M

Published on: September 20, 2018
Author: Amy Liu

Chinese artificial intelligence (AI)-powered mobile internet firm CooTek, best known for keyboard application TouchPal, is seeking US$57 million in a downsized initial public offering (IPO) in America.

The Shanghai-based company, backed by Sequoia Capital China and Chinese venture capital firm Qiming Venture Partners, plans to raise US$57 million by offering 4.35 million American depositary shares (ADS) at a price range of US$12 to US$14.

The offering has scaled back from the US$100 million it originally intended to raise in a prospectus the company filed to New York Stock Exchange in August.

According to its prospectus, CooTek plans to use the net proceeds to further finance research and development, develop new products and services, and continue to invest in technological capabilities, especially big data analytics and AI technology.

Founded in 2008, CooTek developed its first mobile application TouchPal Smart Input, a keyboard application that supports more than 110 languages and a number of other applications across different verticals such as fitness, lifestyle, and entertainment.

In March 2018, the company introduced Talia, an AI-powered virtual personal assistant that claims to understand everyday conversations and deliver relevant content to users in multiple scenarios.

The company reached an average of 125.5 million daily active users across over 240 countries and regions as of June 2018. Financially, the company recorded US$78 million in sales for the 12 months ended June 30, 2018, said its prospectus.

CooTek has applied to float its shares on the New York Stock Exchange under the symbol “CTK”. Credit Suisse, BofA Merrill Lynch and Citi will serve as the company’s bookrunners for the deal.

The company is scheduled to price its IPO during the week of September 24.

Source: China Money Network

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