Mogu Closes in on IPO

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Mogu has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) in regards to its initial public offering (IPO). The company intends to offer 4.75 million American depositary shares (ADSs) for the price of $14 to $16 a piece, with an overallotment option for an additional 712,500 ADSs. At this price, the entire offering is valued up to $87.4 million. Note that each ADS represents 25 ordinary shares of Mogu.

The company intends to list its ADSs on the New York Stock Exchange under the symbol MOGU. The underwriters for the offering are Morgan Stanley, Credit Suisse and China Renaissance.

This is a leading online fashion and lifestyle destination in China. It provides young people with a more accessible and enjoyable shopping experience for everyday fashion, particularly as they increasingly live their lives online. According to the firm, people shop not only to buy but also for leisure, for entertainment and to stay informed of the latest trends. Through innovative use of content, its platform provides a vibrant and dynamic community for people to discover and share the latest fashion trends with others.

Users access this platform primarily through mobile, including the flagship Mogujie app, as well as through Mini Programs on Weixin. Through its strategic partnership with Tencent, one of Mogu’s principal shareholders and the owner of Weixin and QQ, the company also has one of the few dedicated Weixin Pay and QQ Wallet entryways that help direct Tencent’s massive base of users to its platform when they look to fulfill their fashion- and lifestyle-related needs.

This is a technology-driven company that has relentlessly pursued the development of industry-leading AI and big data analytics capabilities to improve operational efficiency and user experience. Its user data is multi-dimensional as it relates to our users’ shopping behaviors, fashion tastes and purchasing history, which enables the company to provide a better and more personalized experience for them.

The company intends to use the net proceeds from this offering to develop and expand its content offering, as well as to develop its technology. The remainder will be put toward working capital and general corporate purposes.