On April 23, China's online business users operating SaaS supplier and leading interactive effect advertising platform operator Duiba Group announced plans to list on the main board of the Hong Kong Stock Exchange.
The co-sponsors of the offering are China Banking International and HSBC. The offering will be held from 9: 00 a.m. on April 24 to 12:00 on April 29. It is expected to be listed for trading at 9: 00 a.m. on May 7 under the stock code 1753.HK. The offering price of Biba Group is between HK $6 and HK $8.1, and the share price will be priced on April 29. The scale of fund-raising (in front of green shoes) is HK $6.67-900 million.
What kind of company the Boba Group is and whether it will be favored by Hong Kong stock investors? let's take a look at the details below.
1. Dipa Group is the forerunner of users operating SaaS
Founded in 2014, Dipa Group is a fast-growing Internet company. In the second half of the Internet, the traffic dividend disappears and the traffic value is highlighted. User acquisition and retention is the core performance indicator of Mobile App. It is obvious that more and more enterprises need meticulous operation to improve user retention.
And operation is the core competence of DIBA Group. Dipa Group is known as "business operation partner", which can establish a comprehensive and effective user operation system for enterprise users, through strong spread of popular style activities, perfect points growth park, interactive innovation check-in, data-driven to achieve the innovation of user operation strategies and means.
Dipa Group is the forerunner of users operating the SaaS market. As of December 31, 2018, the number of mobile App connected to Duiba users to operate the SaaS platform exceeded 14000, and the number of mobile App users served by Teiba Group exceeded 1.3 billion. According to iResearch, 53 per cent of the mobile App in China with the top 100 daily active users in December 2018 used users of Teiba Group to run the SaaS platform.
Dipa Group has accumulated a large number of users in user operation and precipitated a wealth of enterprise cooperation experience. Therefore, no matter in terms of the size of users or the competitiveness of the industry, Dipa Group has established a strong moat.
Doba Group began charging users to operate SaaS products in April 2018. As of December 31, 2018, it had 373 paying customers, including 272 APP developers and 101 offline enterprises. With the increase of the number of SaaS products paying enterprise users and the growth of enterprise user value, there is a huge space for users to operate SaaS business, and high growth is a high probability.
Second, Duiba Group is the leader of interactive effect advertising in China.
The realization of traffic is a major pain point for App enterprises. In order to help enterprises solve the problem of cashing out of traffic, Duba took the lead in creating a new form of operation-oriented advertising-interactive advertising. Through advanced big data analysis and artificial intelligence technology strength, Duba Group can help enterprises to enhance the value of traffic. According to iResearch, in terms of revenue in 2018, Dipa Group ranks first in the industry with a market share of more than 50 per cent in China Mobile Limited's interactive effect advertising.
Data show that Duba Group's interactive effect advertising business is developing very rapidly. as of December 31, 2018, the company placed interactive effects ads on 4065 content distribution channels (mainly mobile App). In 2018, the company's interactive effect advertising service had 285 million monthly active users, 20.5 million daily active users and 14.523 billion ad page views.
Based on the strong domestic demand for Dipa Group users to operate SaaS services and interactive advertising services, the group's revenue increased from 51.138 million yuan in 2016 to about 1.14 billion yuan in 2018, with a compound annual growth rate of 372%.
From the perspective of fund-raising purposes, the proceeds from the listing of the company will be used for the following five aspects: improving research and development functions; improving sales and marketing functions; improving operational functions; and investing and acquiring enterprises related to or complementary to the company's business and technology to support development strategies; and for working capital and general corporate purposes.
With the support of abundant funds, as the company further strengthens its core technical capabilities, improves its marketing and operational functions, and expands its related business, Duba Group is expected to further consolidate its leading position in the industry and maintain high performance growth.
Third, the issuance market has warmed up, the performance of new shares is excellent, and the exchange bar is expected to take over.
The Hang Seng Index has rebounded by more than 20% this year, returning to the 30,000 mark, and the market for new share issuance on the Hong Kong Stock Exchange is also picking up. Since late March, the first-day performance and cumulative performance of Hong Kong new stocks have been very outstanding. Four of the eight new stocks rose more than 20 per cent on the first day, with CANSINOBIO-B's shares rising 57.73 per cent on the first day and Zen you Technology up 30.89 per cent on its first day of trading.
It is worth noting that in the second half of the Internet, more and more investors began to pay attention to SaaS in the field of TO B. Weimeng Group, which listed in Hong Kong on January 15 this year, is also a provider of SaaS products and precision marketing, and its share price has risen 115% since its listing, reflecting the optimism of SaaS-related companies in the capital market. In addition, Doumeng Technology, China's second-largest interactive advertising company, also achieved good share price performance after its listing, with a cumulative increase of 122%.
Dipa Group is the forerunner and leader of the two main businesses, with obvious competitive advantages and rapid development of performance. under the Matthew effect, Duba is expected to continue to benefit from the rapid development of the industry in the future. At present, the Hong Kong stock market is picking up, with SaaS and interactive advertising-related new stocks recording good performance. As the leading company that users operate SaaS and interactive effect advertising, whether Dipa Group will be sought after by Hong Kong stock investors after listing, we will wait and see.
