KKR Weighs IPO of Chinese Digital Marketing Firm Cue

(Bloomberg) -- KKR & Co. is considering an initial public offering of Chinese digital marketing company Cue Holdings Ltd. that could raise as much as $400 million, people with knowledge of the matter said.

The company is working with financial advisers on the potential share sale, which could take place as soon as the first half of next year, according to the people. It has been considering Hong Kong and the U.S. as potential listing venues, the people said, asking not to be identified because the information is private.

Chinese companies have raised $16 billion from overseas IPOs this year, down from $39 billion during the same period in 2018, according to data compiled by Bloomberg. No final decisions have been made, and details of the IPO could change, the people said. A representative for KKR declined to comment.

Cue seeks to help Chinese companies with their digital marketing strategy to boost their business growth. Its clients include consumer brands, financial institutions, online gaming companies and internet service providers.

In August, Cue completed a series A financing round led by Anchor Equity Partners to fund research and development, add-on acquisitions and improvements in Cue’s products and services. KKR, which was Cue’s founding investor, and Princeville Global also participated.

To contact the reporters on this story: Manuel Baigorri in Hong Kong at mbaigorri@bloomberg.net;Cathy Chan in Hong Kong at kchan14@bloomberg.net

To contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, Ben Scent, Amy Thomson

©2019 Bloomberg L.P.