Social Networking App Soul Applies for Hong Kong IPO

Soulgate Inc., the operator of social networking app Soul, filed an application for a public listing on the Hong Kong Stock Exchange (HKEx) on Thursday, with Bank of America Merrill Lynch and CICC serving as co-sponsors.

According to its prospectus, from 2019 to 2021, the company’s revenues were 70.7 million yuan ($10.5 million), 498 million yuan and 1.281 billion yuan respectively, while net losses were 353 million yuan, 579 million yuan and 1.324 billion yuan.

The number of monthly active users of Soul was 11.5 million, 20.8 million and 31.6 million in 2019, 2020, and 2021 respectively. The number of daily active users during the same period was 3.3 million, 5.9 million and 9.3 million.

With its unique positioning in the social networking industry, innovative functions and immersive experience specially created for easy communication and interaction, Soul has attracted many Generation-Z users as its base. In 2021, 74.9% of the monthly active users of the platform were in Generation Z. Each daily active user spends an average of 45.3 minutes on the platform each day.

According to a report by iResearch, in China’s open mobile social network industry in 2021, Soul had the highest daily average number of private messages sent by each user.

Soul was established in 2016, with a product design based on interest mapping and gamification. It is positioned as a virtual social network for new generations of young people. In May 2021, Soul submitted an IPO application to the United States Securities and Exchange Commission. However, in June this year, Soul decided to withdraw its F-1 registration declaration document and no longer issue securities.

SEE ALSO: Tencent-Backed Social Networking App Soulgate Inc. Halts US IPO Process