Mobile Coupon Service Provider TTG IPOs in Australia
Ebrun, 11/28/12
Hong Kong-based technology firm TTG Mobile Coupon Services (TTG) (ASX: TUP), which operates in China through its Shenzhen-based subsidiary Taotaogu Information Technology, successfully listed on the Australian Securities Exchange yesterday, up 50% from the initial public offer price of AUD 0.6, closing the day at AUD 0.90. The company issued just 0.6% of its total shares, raising AUD 2.4 mln, and will look to list the remainder of its shares within two years.
The company's core business is its O2O electronic coupon service platform "U Lian Shenghuo". The platform links users' UnionPay bank cards with coupons from U Lian Shenghuo merchants, allowing coupons to be automatically applied when customers use their UnionPay cards to pay at participating businesses' POS terminals.
TTG CEO, Xiong Kemiao, previously stated that the advantage of the company's coupon service is that brokerage charges are automatically settled at the time of the users' credit card transaction. Users also do not need to show their membership card to use the service. According to TTG's IPO prospectus, TTG makes is revenue from an 11% transaction fee charged on every purchase, as well as service charges from participating businesses. Since its inception in 2010 until Q1 of this year, TTG has made RMB 1.33 mln in revenue and has had operating losses of RMB 1.45 mln.
Xiong Kemiao also previously stated that the company estimates by next year that "U Lian Shenghuo" will be operational nationwide and in a few major foreign cities.
Editor's Note: For more background on this topic, please see "Rumor: WeChat Partners with Shenzhen Payment Firm on E-Coupons" MD 11/09/12 issue.
Keywords: TUP IPO wireless TTG Xiong Kemiao mobile coupon
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