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Cool tech: China's CooTek sets terms for $57 million US IPO

September 19, 2018
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CooTek, a Chinese provider of mobile keyboard software, announced terms for its IPO on Wednesday.

The Shanghai, China-based company plans to raise $57 million by offering 4.35 million ADSs at a price range of $12 to $14. Insiders intend to purchase $10 million worth of shares in the offering (18% of the deal). At the midpoint of the proposed range, CooTek would command a fully diluted market value of $864 million.

Like the last 5 Chinese companies to launch IPOs, CooTek initially filed with a higher proposed deal size ($100 million), and will have a relatively small float-to-market cap.

CooTek was founded in 2008 and booked $78 million in sales for the 12 months ended June 30, 2018. It plans to list on the NYSE under the symbol CTK. Credit Suisse, BofA Merrill Lynch and Citi are the joint bookrunners on the deal. The company is scheduled to price its IPO during the week of September 24.