(Bloomberg) -- Insta360, a Chinese rival to GoPro Inc. with backers including IDG Capital, is considering an initial public offering in Hong Kong as plans for a listing in mainland China stall, according to people familiar with the matter.
The Shenzhen-based maker of 360-degree cameras and virtual reality devices could seek a valuation of at least 15 billion yuan ($2.1 billion) in a share sale, the people said, asking not to be identified as the information isn’t public. It is also looking to raise funds in a pre-IPO placement, one of the people said.
Considerations are at an early stage and Insta360 may decide against pursuing an IPO in Hong Kong, the people said. The company previously filed for a listing in mainland China, but that hasn’t materialized because the securities regulator hasn’t approved it. Insta360 is in the process of withdrawing its A-share listing application, the people said.
Insta360 didn’t respond to requests for comment.
IPOs on mainland exchanges have dwindled since the CSRC announced last year that it would slow the pace of listings to support the flagging stock market. While Beijing has been trying to boost confidence amid slumps triggered by China’s property crisis, slowing economic growth and weak consumer spending, several companies are rerouting their IPOs to Hong Kong instead.
Founded in 2015, Insta360 is among a handful of Chinese hardware upstarts gunning for GoPro in the sports camera business. Its backers also include Suning Holdings Group Co. and Qiming Venture Partners. Insta360 raised $30 million in 2019 from investors including Everest Venture Capital, MG Holdings and Huajin Capital Co.
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