Xuanwu Cloud, a Chinese intelligent CRM services provider that has made several attempts for an IPO, plans to get listed on the Hong Kong Main Board on July 8 and offer 34,390,500 shares with a price range from HKD 4.93 (USD 0.63) to HKD 6.91. Its CRM services mainly consist of CRMPaaS and CRMSaaS.
Xuanwu Cloud Technology Holdings Co., Ltd. (HKG:02392), abbreviated as Xuanwu Cloud (Chinese: 玄武云), recently announced that it would go public on Hong Kong Main Board on July 8, 2022, with CMB International Capital Corporation Limited (Chinese: 招银国际融资有限公司) as its sponsor.
It’s expected to issue 34.3905 million placing shares, including 3.44 million Hong Kong offer shares, 30.9505 million international shares, and 5.1585 million over-allotment shares, at HKD 4.93 (USD 0.63) to HKD 6.91 each.
Xuanwu Cloud is a provider of comprehensive smart customer relationship management (CRM) services. Its CRM services fall mainly into CRM Platform as a Service (CRMPaaS) and CRM Software as a Service (CRMSaaS).
The CRMPaaS service includes various composable functional modules, mainly in the form of API and SDK to empower customers with integrated communication capabilities. Its CRMSaaS service consists of marketing cloud, sales cloud, and customer service cloud, facilitating customers’ marketing and aftersales services.
By now, Xuanwu Cloud has served government institutions and enterprises in fast-moving consumer goods (FMCG), finance, technology, media, and telecom industries.
As the prospectus unveils, from 2018 to 2021, Xuanwu Cloud generated revenues of CNY 519 million (USD 77.587 million), CNY 600 million, and CNY 797 million respectively, growing at a CAGR of 28.6%. During the same period, its net profits were CNY 29.8 million, CNY 13.48 million, CNY 29.31 million, and CNY 15.35 million.
Although it has managed to achieve steady growth in terms of revenues, it suffers from bumpy profits. Its net profit fell nearly 50% year on year in 2021 and its gross margins are also on a downward trajectory.
Xuanwu Cloud has tried several times to launch an IPO. Its parent company Guangzhou Xuanwu Wireless Technology Co., Ltd got listed on the New Third Board in December 2015 and delisted in May 2019. It planned to enter the A-shares market in December 2021, yet failed. Later it submitted a prospectus to the Hong Kong Stock Exchange twice, once in August 2021 and once in March 2022.
Its competitors include Aifanfan (Chinese:爱番番), Neocrm (Chinese:销售易), Lixiaoyun (Chinese:励销云), Reveal, Salesforce, and Everstage.