Zhihu, a Chinese question-and-answer platform, announced terms for its IPO on Friday.
The Beijing, China-based company plans to raise $578 million by offering 55 million ADSs at a price range of $9.50 to $11.50. The company plans to raise an additional $250 million in a concurrent private placement to Alibaba, JD.com, Tencent, and Lilith Games. At the midpoint of the proposed range, Zhihu would command a fully diluted market value of $6.2 billion.
Zhihu is the largest Q&A-inspired online community and one of the top five comprehensive online content communities in China, both in terms of average mobile MAUs and revenue in 2020. The company generates revenue primarily through advertising, paid membership, and content-commerce solutions.
Zhihu was founded in 2010 and booked $208 million in revenue for the 12 months ended December 31, 2020. It plans to list on the NYSE under the symbol ZH. Credit Suisse, Goldman Sachs (Asia) and J.P. Morgan are the joint bookrunners on the deal.
