The company will begin accepting investment orders from Monday to January 29th
Kuaishou Technology, the main competitor to ByteDance in China, is trying to raise as much as $ 5.4 billion in Hong Kong in what would be the world’s first largest public internet offering from Uber Technologies Inc.
The short video startup, backed by Tencent Holdings, is selling 365 million shares at HK $ 105 to HK $ 115 each, in line with the terms of the deal acquired by Bloomberg News. The company will start taking investment orders from Monday to January 29th and slate is listed on February 5th.
Kuaishou is attempting the world’s largest internet IPO since Uber sold US $ 8.1 billion in May 2019, according to data compiled by Bloomberg. China’s start-up IPO will give another boost to Hong Kong’s already hot capital market and potentially become the largest in Asia since the emergence of Budweiser Brewing Co. APAC $ 5.8 billion nearly two years ago.
Kuaishou, which means “quick hand” in Chinese, is one of the biggest internet success stories in China in the last decade, part of a generation of successful startups backed by Tencent . Together with parent TikTok ByteDance, the suit co-created by Su Hua in 2013 began live format and live video size that has been adopted worldwide by the likes of Facebook Inc. Kuaishou’s upcoming debut could test investor desire for so long. a larger competitor, last valued at $ 180 billion.
Kuaishou’s bid has attracted 10 cornerstone investors, who agreed to subscribe for $ 2.45 billion of stock, based on the mid-range of the market area. The lineup includes The Capital Group, Temasek Holdings Pte, GIC Pte, BlackRock Inc. and the Abu Dhabi Investment Authority, the terms show, confirms an earlier Bloomberg News report. The cornerstone investors have agreed to hold stock for six months as a trade on early, guaranteed distribution.
Kuaishou’s valuation could more than double after his Hong Kong IPO. A high price tag will value the Chinese company at $ 60.9 billion, up from the $ 28.6 billion it achieved in last year’s funding round, according to Pitchbook. Even at the lower end of the range, Kuaishou will still be valued at $ 55.6 billion.
ByteDance has long been an IPO candidate but was dropped last year in a fight against the U.S. ban on TikTok after the video service was identified as a national security threat. The social media giant was in talks to raise $ 2 billion before listing some of its businesses in Hong Kong, Bloomberg News reported in November.
Kuaishou had about 262 million daily active users since September, according to the forecast. That’s still less than half the 600 million on Douyin, the Chinese version of TikTok. That said, Kuaishou’s revenue rose 49 percent to 40.7 billion Yuan ($ 6.3 billion) in the first nine months of last year, after consolidating monetization efforts through advertising and e-commerce. While offering free access to its main platform, the startup will cut users’ recommendations for their favorite live streams that meet viral, lip- sync to the latest pop songs and play video games.
Tencent has about a 21.6 percent stake in Kuaishou, and other backers include venture capital firms DCM, DST Global and Sequoia Capital China, the guide shows. Shares in Tencent jumped as much as 6.4% to a high in early Monday trading in Hong Kong.
Morgan Stanley, Corporation of America Corporation and China Renaissance Holdings are sponsors of the deal.
(Except for the headline, this story was not edited by NDTV staff and is published from syndicated food.)