(By Mao Chuan) Many early shareholders including Tiger Global and Sinovation Ventures decided to sell Meitu shares immediately after a half-year lock-up period, which invoked other investors skeptical about Meitu to sell their shares, such as IDG and Qiming Venture.
Meitu had its initial public offering (IPO) on the Hong Kong Stock Exchange in December of 2016.
According to Reuters, Sinovation Ventures sold 66 million Meitu shares at the issue price of HK$8.5 before the market opened on 19th June. And Tiger Global sold 400 million shares for HKD 3.4 billion.
Qiming Venture, a Chinese VC who believe Meitu could be China’s next Tencent, moved 212 million Meitu shares away on 7th July. After that, IDG sold 50 million shares.
And exchange filing shows Eastern Sun Enterprises has bought 37.5 million shares in Meitu at average HK$10.5 per share on July 17, mildly pulled the stock price back up.
Meitu official said, the directors still look optimistically forward to the long-term development of the company.
In the January of 2017, Meitu has been criticized for collecting more user data than necessary and sells it to a third party.
Meitu’s share price has been dramatically fluctuated, hitting this year’s low of HK$8 in January, then later surging to the HK$23 range over a two-and-half-month period.
Meitu, known for its apps that let users beautify their selfies, said it expects to see a larger part of revenue this year from advertising and e-commerce that targets its largely female user base.
For fresh IPOed high-tech names, like Meitu and Snap, it is still struggled to accurately estimate the value of their business, and they are often the victims of speculative trading.