36Kr CEO undaunted by tumbling Nasdaq debut

Shares of Chinese technology media platform 36Kr dropped 10% in its debut on the Nasdaq on Friday, following a string of poor performances by US initial public offerings.

The company’s head chief, Feng Dafeng, however, remained unfazed by 36Kr’s performance on the exchange, saying in an interview with Yicai Global that “the stock price reflects market sentiment, while value lies in the business. The market mood is just froth.”

Photo credit: 36Kr

The Beijing-based company filed for the IPO on the Nasdaq Global Select Market in October 2019, listing the size of the offering at a placeholder amount of US$100 million. It then planned to raise as much as US$63 million with the offering.

However, it settled for just US$20 million, assuming underwriters do not exercise their over-allotment option, after bringing down its size from 3.6 million shares to 1.4 million and pricing them at US$14.5 apiece (the bottom of the marketed range).

The adjustment of the offering’s size was based on what 36Kr’s existing shareholders, including Chinese ride-hailing giant Didi Chuxing and phone manufacturer Xiaomi, intend to purchase, according to a filing with the US Securities and Exchange Commission.

Ant Financial-backed 36Kr consists of three major business segments: news publication 36Kr Media, co-working space operator Kr Space, and a venture capital unit. Other past investors in the company include Matrix Partners China, e.ventures, and Infinity Ventures.

Last year, its Singapore business media subsidiary, KrAsia, raised US$1 million in seed funding. 36Kr also launched its US$144 million VC fund around the same time, intending to back early- and mid-stage companies in the consumption upgrade, high-tech, medical, and cultural fields, among others.

During the first half of 2019, the company reported revenue of about US$29.4 million, jumping from the US$10.4 million revenue it posted during the same quarter last year.