Kingsoft spin-off Cheetah Mobile eyes US$300M in New York IPO

Cheetah Mobile, the fast-growing security software business of Hong Kong-listed Kingsoft, plans to raise about US$300 million in its initial public offering in the United States.

Beijing-based Cheetah, formerly known as Kingsoft Internet Software, intends to list its shares on the New York Stock Exchange, according to its filing on Wednesday with the US Securities and Exchange Commission.

The company said the net proceeds from the share offering would mainly be used to strengthen its research and development, sales and marketing, and international expansion efforts. It did not provide the number of shares to be sold or the price range of the offering.

Established in 2009, Cheetah provides free-to-download applications that include mobile security software Clean Master and mobile power booster Battery Doctor.

CCB International said in a report last month that those popular apps offered plenty of commercial opportunities.

Cheetah posted a net profit of 62 million yuan (HK$78 million) on revenue of 750 million yuan last year. Under its business model, the firm mainly generates revenue from its more than 380 online marketing partners, the biggest of which are Tencent, Alibaba and Baidu.