Kingtone Wirelessinfo Solution Holding Ltd. plans to raise up to an estimated $30 million in an initial public offering of American depositary shares, according to a filing with the Securities and Exchange Commission.
The Chinese-based software company, which focuses on wirelessly enabling businesses and government agencies to more efficiently manage their operations, said it would use the proceeds to fund product development, expand its research and development center, develop customer relations management systems, and for working capital.
Kingtone, which said it expects to receive $27.5 million in net proceeds from the offering, intends to list its ADSs on the Nasdaq Capital Market under the symbol KONE.
In the past two years, Kingtone has achieved significant growth, with revenue more than doubling to $11.2 million for the fiscal year ended Nov. 30, while margins also improved from a year earlier. The company's full-year profit surged to $5.3 million from $1 million.
Kingtone operates in the mobile enterprise software industry in China. It said it believes that market benefits from compelling fundamentals, including increased investment in information technology, the country's rollout of third-generation wireless networks, and increased demand for wireless applications.