China's online home decoration platform Qeeka goes public in Hong Kong

Qeeka Home (stock code 1739.HK) that operates home decoration platform Jia.com went public in Hong Kong on July 12, becoming the first listed home decoration vertical platform on Hong Kong Exchange. The opening price of HKD 4.85 is the same as the issue price.

Qeeka offered about 242 million shares at an IPO price of HKD 4.85, aiming to raise HKD 2.18 billion.

The company stated that 60% of the proceeds will be used for development of its online platform, 15% will be used for investment in its technology infrastructure and system, about 10% will be used for development of its self-operated interior design and construction business, about 10% for strategic investments or acquisition, and another 5% for working capital.

From 2015 to 2017, Qeeka's earnings were RMB 141 million, RMB 301 million and RMB 479 million respectively. The company posted going concern losses of RMB 162 million, RMB 154 million and RMB 109 million, and adjusted net losses of RMB 163 million, RMB 152 million and RMB 89.3 million. The loss had totaled RMB 1.627 billion by 2017.

As the second largest shareholder of Qeeka, Baidu invested USD 190 million in the Series A round in 2010, and now has a 14.39% stake in the company. Qeeka completed Series B round in April 2015 and received USD 22.3 million in Series C round in March 2018.

Qeeka was established in 2007. Its main business covers remodeling platforms, self-operated remodeling business, Qeeka franchised networks and supply chain. Platform is the company's core business.