Chinese social networking company Soulgate Inc. has officially filed paperwork to the SEC ahead of a proposed initial public offering (IPO) on the Nasdaq market.
The organisation runs Soul, a gamified dating and social app that allows users to explore a virtual universe and connect with others through a variety of interactive experiences. New members complete a personality quiz and list their interests to make sure they’re making the best possible connections.
It’s currently backed by Tencent, a local technology conglomerate that has increased its focus on dating products in the past few years.
Soulgate is reportedly aiming to raise $100 million from the IPO, despite early estimates suggesting the figure would be closer to $300 million. It’s believed that the company is worth almost $1 billion.
However, despite having almost 10 million daily active users, Soulgate is yet to turn a profit and has been leaking money over the past couple of years. It reported a loss of $92.1 million in 2020 and year-on-year net losses increased by six times through the first quarter of 2021.
The current plans are for Soulgate to be traded under the ticker symbol SSR, and follow in the footsteps of other high-profile Chinese social companies to be listed in the US.
BlueCity was floated on the Nasdaq exchange in July last year, six years after Momo was first introduced. Momo is currently trading at just over $14, although some analysts believe it is significantly undervalued.
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