July 17, 2024

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TikTok Rival’s .4 Billion IPO Draws Major Investor Subsequent

TikTok Rival’s $5.4 Billion IPO Draws Major Investor Subsequent

Chinese short-video app operator Kuaishou Technologies will raise $5.4 billion from its Hong Kong listing, hitting its most fundraising concentrate on just after assembly robust investor demand.

The original community featuring is set to be the world’s biggest in much more than a 12 months, and will value the company at practically $61 billion. Kuaishou, which is backed by

Tencent Holdings Ltd.

TCEHY -.56%

, competes with ByteDance Ltd., the Chinese enterprise powering TikTok and its sister app Douyin.

Each providers have fed escalating need from young Chinese men and women to look at and record limited video clips on their smartphones. Kuaishou’s namesake brief-video clip platform is the world’s 2nd greatest, in accordance to knowledge cited in its prospectus, and its services in China experienced 305 million common every day active users in the nine months finished September.

Kuaishou, or “fast hand” in Chinese, will market stock at 115 Hong Kong pounds (US$14.80) a share, the major of an before variety of HK$105 to HK$115, in accordance to a term sheet noticed Saturday by The Wall Avenue Journal. Its shares will commence buying and selling Feb. 5.

The IPO aids cement Hong Kong’s standing as a marketplace for large Chinese technological know-how teams. The city in the latest a long time has secured IPOs from providers this sort of as Meituan, a significant player in food stuff shipping and vacation bookings, and smartphone maker

Xiaomi Corp.

, as well as secondary listings from U.S.-stated corporations this kind of as

Alibaba Team Holding Ltd.

and

JD.com Inc.

Shares in these companies have surged, with Meituan’s stock much more than tripling in the past 12 months, and Xiaomi’s far more than doubling about the very same time period. A tech-centered benchmark launched past summer season by Cling Seng Indexes Co., compiler of the city’s extensively followed Dangle Seng Index, has received 32% in the six months by way of Friday’s near.

Kuaishou is also benefiting from broader IPO marketplace exuberance, both of those in Hong Kong and internationally. Soon after making incredibly hot market place debuts in Hong Kong very last yr, Chinese vaping-know-how corporation

Smoore Intercontinental Holdings Ltd.

, and bottled-h2o large

Nongfu Spring Co.

, for case in point, are both equally now really worth multiples of their valuations at their IPOs.

Models of

Morgan Stanley,

Financial institution of The united states Corp.

and

China Renaissance Holdings Ltd.

are performing as joint sponsors for Kuaishou’s IPO. A block of 10 cornerstone buyers supported the offer by committing to obtain $2.45 billion of shares anywhere in the range it priced.

A so-termed inexperienced-shoe solution implies underwriters could finally raise the deal’s measurement by 15%, to a ultimate whole of $6.2 billion.

Generate to Joanne Chiu at [email protected] and Quentin Webb at [email protected]

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