IoT Platform Firm Tuya Completes Hong Kong IPO

Tuya Smart, an IoT development platform provider, was officially listed on July 5 to the main board of the Hong Kong Stock Exchange by way of a dual listing, under stock code “2391.” Tuya Smart is currently quoted at HK$19.3 ($2.46) per share, with a market capitalization of over HK$11.166 billion ($1.4 billion).

Tuya Smart’s adopting a dual primary listing comes with more stringent regulatory requirements. As a result, the firm now has primary listings in both New York and Hong Kong, where the same type of shares are listed in both markets, allowing for cross-market liquidity and easier acceptance by international investors.

Tuya Smart was established in 2014. It has built the world’s first IoT cloud development platform, and offers an IoT platform-as-a-service (PaaS) that helps brands, OEMs and developers to develop, launch, manage and monetize smart devices and services. Software-as-a-service (SaaS) for the industry helps companies deploy, connect and manage many different types of smart devices.

As of March 31, 2022, Tuya Smart’s IoT development platform had more than 582,000 registered developers in over 200 countries and regions, serving 55 Fortune 500 enterprises.

According to China Insights Consultancy, if calculated by the firm’s 2021 revenue, Tuya Smart tops the global smart home and smart business IoT PaaS market, with a 14.9% market share.

In terms of financial data, from 2019 to 2021, the revenue of Tuya Smart was $106 million, $180 million and $302 million respectively. Gross profit margins were 26.3%, 34.4% and 42.3% respectively.

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Tuya Smart stated in the prospectus that net proceeds from the dual listing will be used primarily to enhance IoT technology and infrastructure, expand and enhance product offerings, marketing and branding activities, pursue strategic partnerships, investments and acquisitions, and for general corporate purposes and working capital needs.