CooTek Proposes Terms For $57 Million U.S. IPO
Sep. 21, 2018 11:03 AM ET | About: CooTek (CTK), Includes: GOOG
Donovan Jones
Donovan Jones
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Summary
CooTek has filed proposed terms to sell $57 million of ADSs representing Class A shares in a U.S. IPO.
The firm is a mobile app developer expanding its focus from keyboard input software to AI-driven digital assistant technologies.
CTK has grown rapidly and has a successful investor base which is supporting the IPO.
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cootek ipo
Quick Take
CooTek (CTK) intends to raise $57 million in an IPO of ADSs representing underlying Class A shares, per an amended registration statement.
The company provides smartphone keyboards and more recently an AI-powered virtual digital assistant, Talia.
CTK has a top tier investor base, support for the IPO, and strong results in recent periods with prospects for continued growth in the near future.
Company & Technology
Shanghai, China-based CooTek was founded in 2008 to develop and maintain smartphone keyboards for iOS, Android and Windows platforms.
Management is headed by Co-Founder and CEO Michael Jialiang Wang, who was previously a Product Manager at Microsoft R&D Group in China.
CooTek has developed TouchPal, a virtual keyboard for smartphone devices. The keyboard supports 85 different languages and operates in more than 200 countries with more than 132 million daily active users [DAU].
Below is a brief overview video of TouchPal Keyboard Pro with AR Emojis:
(Source: TouchPal)
Investors in CooTek include Qiming Venture Partners, Sequoia Capital, SIG China Investments and others.
The company generates revenue primarily through mobile advertising.
Sales and marketing expenses as a percentage of net revenues have dropped as revenues have sharply increased, as the figures below indicate:
Sales & Marketing Expenses vs. Revenue
Period
Percentage
Through 2Q 2018
52.4%
2017
54.0%
2016
85.2%
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