Qutoutiao, a Chinese news and video aggregation app that provides custom feeds, announced terms for its IPO on Tuesday.
The Shanghai, China-based company plans to raise $128 million by offering 16 million shares at a price range of $7 to $9. JD.com intends to purchase $40 million worth of shares in the offering (31% of deal). At the midpoint of the proposed range, Qutoutiao would command a fully diluted market value of $2.45 billion.
Qutoutiao was founded in 2016 and booked $165 million in sales for the 12 months ended June 30, 2018. It plans to list on the Nasdaq under the symbol QTT. Citi, Deutsche Bank, China Merchants Securities, UBS Investment Bank and KeyBanc Capital Markets are the joint bookrunners on the deal. It is expected to price during the week of September 10, 2018.
