Chinese Short-video Social Platform Kuaishou launches US$ 5.4B Hong Kong IPO

One of the world’s leading Chinese video-clip and live-streaming groups, Kuaishou Technology is seeking to raise as much as US$ 5.4 billion in Hong Kong. This could be the world’s biggest internet initial public offering since Uber Technologies Inc.’s US$ 8.1 billion U.S. share sale in May 2019 and the largest in Hong Kong since Budweiser Brewing Co. APAC Ltd. raised US$ 5.75 billion in September 2019.

Kuaishou began taking investor orders on 25 January 2021 for the stock sale ahead of a listing on 5 February 2021. Kuaishou Technology is backed by Tencent Holdings Ltd. and has ByteDance Ltd., the Chinese company behind TikTok as its biggest rival.

The company is selling 365.2 million new shares at 105 to 115 Hong Kong dollars, according to a term sheet seen by The Wall Street Journal. The offer price will be fixed on 29 January. At the top of the range, the deal implies a market capitalization of $60.9 billion. The Company’s IPO will give a great boost to Hong Kong’s already bullish capital market.

About Kuaishou

Founded in 2011 by Hua Su, Kuaishou Technology is a short video social platform. Its mission is to increase every person’s happiness through its platform that allows people to share short videos, photos and conduct live streams. It aims to empower the commoners of China to make an impact virtually and engage with their fans from all walks of life.

The company claims that over 15 million pieces of user-generated content are created on its platform every day. While the Kuaishou platform is just for the Chinese market, its international version, Kwai, has similar features but offers localized features tailored to users abroad.

The IPO of Kuaishou has attracted 10 cornerstone investors, who will subscribe for US$ 2.45 billion of stock including The Capital Group, Temasek Holdings Pte, GIC Pte, Canada Pension Plan Investment Board, Boyu Capital BlackRock Inc. and Abu Dhabi Investment Authority. The cornerstone investors have agreed to hold stock for six months in exchange for early, guaranteed allocation. Units of Bank of America Corp., Morgan Stanley and China Renaissance Holdings Ltd. are acting as joint sponsors for the deal.

With Kuaishou’s valuation rising rapidly, it could more than double after its Hong Kong IPO. The Chinese company could be valued at US$ 60.9 billion, up from the US$ 28.6 billion valuation in a funding round last year, obtaining US$3 billion in funding from a Tencent-led consortium. 

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