Tuya (NYSE:TUYA) is enjoying its first day of trading on Thursday after the company’s initial public offering (IPO) brought in more than it expected.
Tuya is a Chinese software company focused on the Internet of Things (IoT). Its goal is to assist in the creation of online spaces. That includes product, app, and cloud development. All without requiring users to deal with code. It also offers data analytics and an e-commerce platform for customers.
Now that we know what the Tuya business is all about, let’s take a dive into the company’s IPO.
- Shares of the company’s stock are trading on the New York Stock Exchange under the TUYA stock ticker.
- The company’s IPO saw it offering up 43.59 million American depositary shares (ADS).
- Each of these shares translates to one Class A shares of TUYA stock.
- Tuya’s IPO priced its shares at $21 each.
- That ended up being above the company’s planned IPO price range of $17 per share to $20 per share.
- This has the company raising a total of $915 million from its IPO.
- Tuya already has plans for the money it’s made from its IPO.
- It will use the funds for research and development, investing in tech and infrastructure, as well as other general corporate uses.
- Managers of the offering include Morgan Stanley (NYSE:MS), Bank of America (NYSE:BAC), and China International Capital (OTCMKTS:CNICF).
- The IPO also includes a 30-day option for underwriters to purchase an additional 6.54 million ADS.
- Tuya’s IPO is set to close on Monday.
- It’s worth noting that New Enterprise Associates and Tencent (OTCMKTS:TCEHY) back Tuya.
TUYA stock is off to a strong start during its public debut today with more than 18 million shares having changed hands as of this writing. The stock is also up 17.8% at that same time.
Tuya’s successful IPO could be a positive sign for other Chinese companies.
Chinese stocks were having a rough time on fear of delisting in the U.S. under the Trump Administration. However, there’s room for them to grow with a change in policy now that President Joe Biden is in charge. That means it’s a good idea for investors to be well-read on Chinese stocks.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.