An apps that enhance selfies set to be valued $5.2 billion

Chinese tech group Meitu, best known for apps that enhance selfie pictures, is launching an initial public offering in Hong Kong that would value the lossmaking company at up to $5.2 billion. The float, scheduled for December 15, would be one of the largest in the Chinese tech sector since Alibaba raised $25 billion from a 2014 New York float that valued the company at more than $200 billion… Meitu, whose name means “beautiful picture” in Mandarin, makes apps that edit users’ selfies to enlarge eyes, whiten skin and thin jaws… While Meitu boasts more than 450 million monthly active users, mostly young women, it has yet to turn a profit, accumulating losses of Rmb6.3 billion ($910 million) since 2013. It expects to make losses this year and next… The company’s high hopes for its IPO will provide a rare test of whether the public markets agree with the sky high valuations that private investors have been ascribing to Chinese tech start-ups. Many other promising companies have been snapped up by the country’s tech giants.

 

Yuan Yang and Gloria Cheung

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