DOMESTIC photo app and mobile phone maker Meitu Inc. is set to launch an up to US$735 million initial public offering (IPO) in Hong Kong, IFR reported yesterday, citing people close to the deal.

    Meitu, better known for its apps that let users retouch and beautify selfies and other photos, is offering shares in an indicative range of HK$8.50 to HK$9.60 (US$1.10-US$1.24) each, added IFR. The IPO is slated to be priced Dec. 8.

    The deal will value Meitu, which counts venture capital investors Qiming Venture Partners, IDG-Accel China and Tiger Global among its backers, at up to US$4.5 billion, IFR said.

    Meitu is mostly known for photo-related mobile phone apps, but 95 percent of its revenue comes from the sale of smartphones, where it competes with much larger players including Huawei Technologies Co., Xiaomi Inc. and Apple Inc.

    In its preliminary prospectus in August, Meitu said it plans to use part of the IPO funds to expand its smartphone business and produce new devices, for potential acquisitions and for marketing and research.

    The IPO will be a rare technology sector IPO in Hong Kong.

    Between one-quarter to one-third of the shares will be sold to cornerstone investors, IFR said. That would be much lower than some of the large new listings in the city, including the US$7.6 billion IPO of Postal Savings Bank of China in September that had 77 percent of its deal bought by cornerstones. (SD-Agencies)