Tencent Tech, 9/13/10
Chinese content delivery network (CDN) service provider ChinaCache has filed for a USD 100 mln IPO on the Nasdaq stock exchange under the ticker symbol CCIH. The number of shares and pricing have not yet been announced. The offering will be underwritten by Merrill Lynch, Pierce, Fenner & Smith Incorporated and Deutsche Bank Securities.
ChinaCache intends to use the proceeds of the offering to expand research and development efforts, to fund capital expenditures for network and other equipment and to fund working capital for other general corporate purposes, including strategic investment in and acquisitions of complementary businesses.
Editor’s Note: According to ChinaCache’s IPO prospectus, net revenues for the six months ended June 30, 2010 were RMB 170.3 mln (USD 25.1 mln), with a net loss of RMB 24.2 mln (USD 3.6 mln) for the same period.
Net revenues were RMB 161.0 mln, RMB 291.4 mln and RMB 272.4 mln (USD 39.9 mln) in 2007, 2008 and 2009, respectively, with net losses of RMB 87.9 mln, RMB 151.8 mln and RMB 39.2 mln (USD 5.7 mln), respectively, in the same periods.
Active customers (generated revenue within 30 days before the end of the applicable period) has grown from 129 as of December 31, 2007 to 418 as of June 30, 2010.
The company began as Beijing Blue IT Technologies in June 1998. In June 2005, Cayman Islands-based offshore holding company ChinaCache International Holdings was incorporated. In August 2005, ChinaCache established its wholly-owned PRC subsidiary, ChinaCache Network Technology (Beijing) Limited, or ChinaCache Beijing. In January 2008, ChinaCache acquired BVI-based JNet Holdings Limited. As an integral part of this transaction, ChinaCache obtained control over Shanghai JNet Telecom, an affiliate of JNet Holdings in China, through a series of contractual arrangements. In July 2008, ChinaCache obtained control over Beijing Jingtian, through a series of contractual arrangements.
ChinaCache currently has branch offices in nine cities in China, namely, Wuhan, Shanghai, Harbin, Shenzhen, Chengdu, Nanjing, Shenyang, Xi'an and Guangzhou. ChinaCache also has two overseas subsidiaries, ChinaCache North America, Inc., established in California in August 2007, and ChinaCache Networks (Hong Kong) Limited, established in Hong Kong in April 2008.
To view ChinaCache's complete IPO prospectus, please click here.