Hillstone Networks, a Silicon Valley-based network security firm backed by venture capital Vickers Venture Partners of Singapore, has raised Rmb949 million (about US$132 million) in its initial public offering (IPO) in Shanghai.
The enterprise network security solutions provider listed on the sci-tech innovation board, also known as STAR Market, on the Shanghai Stock Exchange. Its stock gained 112 per cent after its first day of trading. The company now has a market capitalisation of Rmb8.1 billion (US$1.1 billion).
In a statement, Hillstone said its enterprise network security and risk management solutions have been adopted by over 17,000 clients worldwide. These clients include Fortune 500 firms, government and service providers, and educational and financial institutions.
The company was founded in 2006 and Vickers Venture, the venture capital firm based in Singapore, invested in Hillstone Networks in 2009. With the IPO, the VC firm said it has partially exited from the company.
Vickers Venture, was founded by Finian Tan and his co-founders in 205. While based in Singapore, the VC firm has offices in London, Silicon Valley, San Diego, New York, Hong Kong, Shanghai, and Kuala Lumpur.
Hillstone’s IPO on the STAR Market is a milestone for the company as it further cements its market-leading position, especially now that network security is playing a crucial role in China, according to Vickers Venture Partners’ Managing Director Linda Li.
Network and cybersecurity have been given much importance in China, with the Chinese government releasing an industry blueprint as part of efforts to develop the country’s local cybersecurity industry.
Globally, the US remains the global industry leader, as of 2017, followed by Europe. However, the Asia-Pacific region is forecast to take up over 30 per cent of the market by 2025.
The Silicon Valley-based network security firm now joins a select number of companies that have been permitted to list on the STAR Market, China’s version of NASDAQ.
STAR Market, which was launched in the middle of 2019, is the only trading venue that allows companies with dual-class share structure to go public.