Kuaishou shares rise nearly 200% in $5.3 billion Hong Kong debut

Kuaishou headquarters is pictured on November 5, 2020 in Beijing, China.

VCG | Visual China Community | Getty Photos

GUANGZHOU, China — Shares of Chinese instant video company Kuaishou rose practically 200% on the launch on its debut in Hong Kong.

The skills company raised 41.28 billion Hong Kong bucks ($5.32 billion) from the initial public offering (IPO) after pricing its shares at 115 Hong Kong bucks every, on the tip of its expected fluctuate.

Kuaishou shares unfolded at 338 Hong Kong bucks.

The corporate’s main industry is a transient video app and it makes money from customers who raise digital gifts to give to their authorized streamers. Kuaishou is also pushing into contemporary areas resembling e-commerce.

Kuaishou said its IPO turned into oversubscribed with seek info from excessive. If the so-known as overallotment option is exercised, which permits the investment financial institution to residing more shares, then Kuaishou would possibly perhaps likely well develop over $6 billion.

Ten cornerstone investors led by Capital Community and engaging BlackRock and Constancy invested within the IPO.

Kuaishou’s itemizing will likely be a test of appetite for Chinese skills firms perfect as Beijing steps up its scrutiny of the sector in areas from anti-monopoly to records protection. In November, the Chinese authorities introduced suggestions round are living-streaming procuring, which can likely well affect Kuaishou.

The IPO is also one other decide for the Hong Kong stock alternate which has managed to draw excessive profile skills firms and secondary listings. U.S.-listed Chinese firms including Alibaba and JD.com dangle also raised money in Hong Kong. CNBC reported that Nasdaq-listed Chinese video company Bilibili has filed for a secondary itemizing in Hong Kong too.

Kuaishou faces stiff competition in China from rivals resembling Douyin, the Chinese model of TikTok owned by ByteDance, besides to Tencent‘s WeChat messaging app.

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