Soulgate, which provides the gamified social networking app Soul in China, announced terms for its IPO on Thursday.
The Shanghai, China-based company plans to raise $185 million by offering 13.2 million ADSs at a price range of $13 to $15. New investors Janus Henderson and Boyu Capital intend to purchase an aggregate $80 million worth of ADSs in the offering (43% of the deal). The company also plans to raise an additional $89 million in a concurrent private placement of Class A shares to miHoYo. At the midpoint of the proposed range, Soulgate would command a fully diluted market value of $1.8 billion.
Soul is a virtual social network app created to address the drawbacks of current social media platforms. Users, called "Soulers," create a new identity in Soul's virtual universe to freely create, share, explore, and connect with other users. The company generates interest graphs for each user and sends them to different "planets" based on their passions to connect with other like-minded users.
Soulgate was founded in 2016 and booked $102 million in revenue for the 12 months ended March 31, 2021. It plans to list on the Nasdaq under the symbol SSR. Morgan Stanley, Jefferies, BofA Securities, and CICC are the joint bookrunners on the deal.
