MegazoneCloud Picks JPMorgan, Banks for IPO as AI Interest Grows

MegazoneCloud Corp. has selected firms including a unit of JPMorgan Chase & Co. to help it kickstart an initial public offering that could value one of Asia’s biggest cloud and AI services companies at several billion dollars.

The Korean cloud management company selected JPMorgan Securities, Samsung Securities Co. and Korea Investment & Securities Co. as lead underwriters for a public market float, according to people familiar with the matter. It gave secondary arranger roles to Bank of America Corp., Citigroup Global Markets Korea Securities Ltd. and KB Securities Co., the people said, asking not to be named discussing a private deal.

Backed by MBK Partners Ltd., MegazoneCloud is one of the biggest cloud service providers, helping link corporations to Amazon Web Services and other premium platforms. The startup aims to tap mounting investor interest in companies that provide the infrastructure to support AI development, from chipmakers to datacenter and online services providers.

The Seoul-based startup posted revenue of $1.2 billion in 2023 according to its website, and was valued at 2.4 trillion won ($1.7 billion) in 2022 when it secured capital from MBK Partners and IMM Private Equity Inc.