Soulgate Inc., the operator of social networking app Soul, has decided to withdraw its F-1 registration statement document and no longer issue securities, according to a document he filed Thursday with the US SEC.
Soul was established in 2016, with product design based on interest mapping and gamification. It positions itself as a virtual social network for new generations of young people.
On May 10, 2021, Soulgate Inc. submitted its F-1 prospectus and offered to list on NASDAQ with the symbol “SSR”. Morgan Stanley, Jefferies, BofA Securities and CICC served as underwriters. Then, on June 18, it submitted an updated IPO application document, setting its issue price range between $13 and $15 per American Depository Share (ADS), planning to issue 13, 2 million shares.
However, on June 23, shortly after the prospectus update, Soulgate Inc. issued a statement announcing the suspension of its public listing process in the United States. The statement also said that Tencenta major shareholder, also supported the decision.
At that time, the company said it was happy to receive very warm feedback from the market after the price range update. In this process, the company also received the possibility of other capital transactions. After careful consideration, management has decided to suspend the pricing process for its IPO.
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According to a previously submitted prospectus, Tencent was the largest outside shareholder of Soulgate Inc. prior to the IPO. Tencent owns 75,807,291 Class A ordinary shares of the company through Image Frame Investment (HK) Limited, representing 49.9% in aggregate, as well as 25.7% of the voting rights.
In 2019 and 2020, the company’s revenue was 70.707 million yuan ($10.6 million) and 498 million yuan, respectively. Its net losses were 300 million yuan in 2019 and 488 million yuan in 2020.