Chinese software company Tuya (NYSE: TUYA) was able to raise $915 million in its initial public offering on the New York Stock Exchange, making it the second-largest Chinese corporate IPO in the United States.
Founded in 2014 and backed by New Enterprise Associates and Tencent Holdings Ltd, Tuya specializes in cloud computing to manage large numbers of smart devices. Tuya said in its SEC filings that the company plans to raise additional funds from its public offerings for research and development and further invest in technology and infrastructure needed for its businesses. The company recorded a net loss of $67 million in 2020.
Tuya also listed its net loss as a risk factor in its SEC filing documents. The company acknowledged that its primary source of revenue depends on a limited number of major customers. The company also has a history of net loss and “may not be able to achieve or sustain profitability in the future.”
However, these factors did not stop the company from raising funds from the U.S. stock market. According to reports from Bloomberg, the company offered 43.59 million American depositary shares at $21. After acquiring $915 million from the stock market, the company now has a market value of $11.8 billion based on its outstanding stock listed on the filing papers.
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Six days before its IPO in the United States, Tuya announced its partnership with Turkish LED bulb producer LEDOLET to expand in Turkey’s intelligent lighting market. The company also announced in the past month that they would provide technical support to smart home applications with its business partners in Ukraine, Italy and other European countries.