IPO Report: Sungy Mobile (GOMO)

Francis Gaskins  |

Sungy Mobile (GOMO) is a leading provider of mobile internet products and services globally with a focus on applications and mobile platform development.

Nine other operating companies scheduled IPOs for this week.. The full IPO calendar can be found at IPOpremium.

Manager, Joint managers: Credit Suisse and J.P. Morgan.  Co-Managers: Oppenheimer & Co., China Renaissance Securities (Hong Kong) Limited.  F-1 filed November 12, 2013

GOMO  scheduled a $74 million IPO with a market capitalization of $365 million at a price range midpoint of $10.50, on the NYSE for Friday, November 22, 2013.


For the nine months ended September 2013 compare to the year earlier period, GOMO’s top line revenue incresed 88% to $37.5 million, gross profit was 70% and net income was 26%.

GOMO’s IPO is small at $74 million with 27% already sold (see below).

27% of the IPO already sold

Concurrently with, and subject to, the completion of this offering, Qihoo 360 Technology Co. Ltd., (QIHU), $22 billion market cap, and Kingsoft Internet Software Holdings Limited -- the parent is   Kingsoft Corporation Limited (HKG:3888) with a $23 billion market cap  through a subsidiary -- has each agreed to purchase from GOMO US$15.0 million and US$5.0 million, at the IPO price.


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At an annualized P/E of 26, GOMO is a buy on the IPO.

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GOMO is a leading provider of mobile internet products and services globally with a focus on applications and mobile platform development.

GOMO was one of the top three publishers worldwide on Google Play as measured by the number of downloads in the Applications category for the nine months ended September 30, 2013, based on the App Annie Intelligence Report.

Platform product

GOMO’s platform product, GO Launcher EX, manages apps, widgets and functions on Android smartphones and serves as users’ first entry point to their phones.

GO Launcher EX was the No. 1 most downloaded product in the Personalization category on Google Play in both 2012 and the nine months ended September 30, 2013, according to the App Annie Intelligence Report.

It has attracted 239 million users as of September 30, 2013, with the average monthly active users reaching 42 million in the third quarter of 2013. GO Launcher EX is available in 38 languages and has attracted users from over 200 countries and regions since it was launched in November 2010.

Building upon its success in GO Launcher EX, GOMO has developed a portfolio of GO series products which include its launcher products and a broad range of other GO series apps and widgets that provide rich functionality, enhanced performance and extensive personalization for Android smartphones.

GOMO’s GO series products in aggregate have attracted 325 million users worldwide as of September 30, 2013, with over 70% of these users from locations outside of China.

The average monthly active users for GOMO’s GO series products were 87 million in the third quarter of 2013.

As of October 15, 2013, GOMO had one out of the 17 non-game products with more than 100 million cumulative downloads and three out of the 44 non-game products with more than 50 million cumulative downloads on Google Play, excluding apps developed by Google, according to Google Play store statistics archived by App Annie.

GOMO has created and continued to expand a GO platform that is built upon GO Launcher EX and integrates all of GOMO’s GO series products as well as third-party mobile internet products and services.


Customer and customer collaboration

Recent developments

Intellectual property

The intellectual property rights GOMO owns as of September 30, 2013 include: (1) six patents relating to its proprietary technology; (2) 11 registered domain names that are material to its business, including 3G.net.cn, 3G.cn and jiubang.com; (3) copyrights to 55 software programs relating to various aspects of GOMO’s operations; and (4) 50 trademarks and service marks for its brands and logos, including logos for GO Launcher EX and GO series products.

In addition, GOMO has filed 32 patent applications covering certain of its proprietary technologies and 18 trademark applications in China and 20 trademark applications in South Korea and U.S. as of September 30, 2013.


GO series products.
 GOMO faces competition from numerous competing products for Android smartphones from third-party developers, such as Facebook Home in the field of launcher products. GOMO will continue to innovate and improve its existing products and services and develop new ones to maintain its competitive advantages.


3G.cn faces a variety of competitors in China, as a significant portion of major internet companies in China have mobile internet portals.

In the future, GOMO expects to continue to compete with other internet portals for visitors, content and advertisers.

Mobile reading services
GOMO’s most prominent competitor in mobile reading services in China is Cloudary Corporation’s network of original literature websites.

GOMO’s mobile reading services also compete with literary content providers. GOMO competes with these companies for content, readers, authors, advertisers and distribution channels, and expects to continue such competition as GOMO further expands.

5% stockholders

Freedom First Holdings Limited 31%

Hamamelis Holdings Limited 10% 

C-Cycle Limited 5%

IDG funds 29%

JAFCO Asia Technology Fund III 10%

WI Harper INC Fund VI Ltd. 10%

CBC Mobile Venture Limited 15%                             

Use of proceeds

GOMO expects to net $65.5 million from its IPO. Proceeds are allocated as follows:

general corporate purposes, which may include investment in research and development of new mobile internet products, services, technology and infrastructure, expanding GOMO’s selling and marketing activities, working capital needs, potential acquisitions, partnerships, alliances and licensing opportunities.

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