Lei Jun, the founder of Chinese smartphone maker Xiaomi, will soon have a third listed company under his belt after his office software firm Beijing Kingsoft Office Software moved a step closer to trading shares on China’s newly launched technology innovation board in Shanghai, TechInAsia reported.
Kingsoft Office’s response to an inquiry from the Shanghai Stock Exchange on its listing application has been updated, according to information published by the Sci-Tech Innovation Board, known as the STAR Market.
That paves the way for the initial public offering, which would be the third for Lei after his smartphone startup Xiaomi and Kingsoft Software, which are both listed in Hong Kong.
In its prospectus, Kingsoft Office claims to be the country’s “leading” office software and service provider, competing against US software giant Microsoft. It offers products such as WPS Office and Kingsoft PowerWord, which can be used on mainstream operating platforms such as Windows, Linux, Android, and iOS, the report said.
By the end of last year, monthly active users (MAUs) of these products reached 310 million. The mobile version of WPS Office, which is available in 220 countries and regions, has more than 181 million MAUs, according to the company’s prospectus published May 8.
The company counts government bodies in more than 30 provinces and 69 Chinese Fortune Global 500 companies as customers, the prospectus said.
Kingsoft Office plans to raise 2.05 billion yuan (US$300 million), with no more than 101 million shares or 21.91% of the total being issued. The company will use the money raised on further developing and upgrading WPS Office, as well as on AI and cloud services research and development in the office software field and its international expansion.
Besides his software businesses, Lei has invested in the semiconductor sector to complement the hardware products made by Xiaomi, the report said.
Xiaomi’s venture fund has invested in VeriSilicon Microelectronics, a Shanghai provider of system-on-a-chip devices and IP for mobile internet products. Currently, Xiaomi holds 6.25% of its equity and is the fourth-largest shareholder, according to documents filed by VeriSilicon to China Securities Regulatory Commission.