Sungy Mobile, which is a Chinese-based mobile app developer, has filed for an IPO. The company plans to list on the NYSE under the symbol of “GOMO” and the lead underwriters include Credit Suisse (CS) and JPMorgan (JPM).
Founded a decade ago, Sungy was a pioneer of mobile app development, with a focus on systems like Wireless Application Protocol and the Symbian mobile operating system. But it was not until the emergence of Google’s (GOOG) Android platform that the company began its strong growth.
As of now, Sungy is one of the top three worldwide publishers for Google Play in terms of downloads. At the core is a platform product called GO Launcher EX, which provides improved multimedia experiences on smartphones as well as helpful widgets, themes and personalization features. There were over 239 million users as of the end of September.
Sungy also has apps for other categories like SMS, storage and weather. In fact, Sungy even operates a mobile portal, known as 3G.cn, which has huge amounts of media and user-generated content. Unique visitors total around 44 million.
For the most part, Sungy generates revenues from advertising, paid downloads, premium themes and in-app purchases. During the first half of 2013, revenues grew by 87% to total $22.7 million. Meanwhile, net income came to $5.5 million for the same time period.
Plus, the opportunity ahead for Sungy is certainly enormous. According to IDC, the number of mobile internet users is expected to go from 1.1 billion in 2012 to 2.3 billion in 2017, which translates into a compound annual growth rate of just under 16%.
Obviously, that kind of growth means there will be plenty of money-making opportunities for app developers. For example, global mobile advertising is forecast to jump from $8.8 billion in 2012 to a whopping $59.7 billion in 2017, according to a study from eMarketer.
And it means Sungy Mobile could be poised for one hot IPO.
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.