Internet search giant Baidu, smartphone brand Xiaomi and Hong Kong-listed Kingsoft have agreed to subscribe with Cheetah Mobile, the security software company that plans to raise about US$200 million in its initial public offering in the United States. Analysts yesterday said that combined subscription, worth US$50 million, would help prop up the New York Stock Exchange-bound listing of Cheetah after the Beijing-based company - formerly known as Kingsoft Internet Software - downsized its IPO from the original US$300 million that was filed earlier this month. Cheetah, a subsidiary established by Kingsoft in 2009, will offer 12 million new American depositary shares, each priced between US$12.50 and US$14.50. That would put Cheetah's market capitalisation at between US$1.8 billion and US$2.1 billion, according to its US Securities and Exchange Commission filing. Jeff Hao, an analyst at China Merchants Securities, said: "Timing is not on the company's side because Alibaba's own IPO will require a lot of capital from the market." Alibaba, the mainland's biggest e-commerce services provider, is expected to file for its share offering in New York within days. Speculation has been rife that Alibaba could raise more than US$20 billion, positioning its IPO as the largest in history. Guotai Junan International analyst Ricky Lai expected the Cheetah IPO to still manage to attract investors with a specific interest on the growing mobile security applications market segment. "Baidu's and Xiaomi's subscription deals would certainly help raise the company's profile," Lai said. Once its IPO is completed, Cheetah will issue and sell its Class A shares worth US$10 million to parent Kingsoft, US$20 million to Baidu and US$20 million to Xiaomi Ventures, the smartphone brand's venture capital unit. Cheetah has proposed adopting a dual-class share capital structure that would allow Kingsoft to retain control and continue to consolidate the unit's financial results after the IPO. This type of share structure is not available in Hong Kong. In its Hong Kong stock exchange filing yesterday, Kingsoft said the Cheetah IPO net proceeds will amount to US$147.4 million, or US$170 million if the underwriters exercise their option to buy additional shares. Cheetah plans to use US$50 million of the proceeds to expand into selected international markets; US$35 million to build up its sales and marketing; US$35 million to invest in technology, infrastructure, and research and development; and the balance for general corporate purposes.