One of the greatest Chinese companies in the world for live streaming and video clips, Kuaishou Technologies is looking to raise up to US$ 5.4 billion in Hong Kong. Since Uber Technologies Inc.’s US$ 8.1 billion U.S. share sale in May 2019 and Budweiser Brewing Co. APAC Ltd.’s US$ 5.75 billion U.S. share sale in September 2019, this could be the largest internet initial public offering in the history of the internet.
The stock sale for the upcoming 5 February listing by Kuaishou started receiving investor orders on January 25, 2021. The Chinese firm ByteDance Ltd., which created TikTok, is Kuaishou Technology’s main competition and is funded by Tencent Holdings Ltd.
According to a term sheet seen by The Wall Street Journal, the corporation is offering 365.2 million new shares for between 105 and 115 Hong Kong dollars. On January 29, the purchase price will be set. The agreement assumes a market capitalization of $60.9 billion at its highest point. The Company’s IPO will significantly bolster Hong Kong’s already brisk stock market.
Kuaishou Technologies is a micro-video social platform that was established in 2011 by Hua Su. Via its platform, which lets users exchange quick movies, still photographs, and live feeds, it aims to make everyone happier. It aspires to enable Chinese citizens from all areas of life to interact with others from all walks of life and make an influence online.
The company asserts that every day, more than 15 million pieces of user-generated content are produced on its platform. While the Kuaishou platform is exclusive to the Chinese market, its foreign counterpart, Kwai, has comparable capabilities while also providing specialised features catered to users outside of China.
The Capital Group, Temasek Holdings Pte, GIC Pte, Canada Pension Plan Investment Board, Boyu Capital BlackRock Inc., and Abu Dhabi Investment Authority are among the ten cornerstone investors who will subscribe for US$2.45 billion of Kuaishou stock. The cornerstone investors have consented to a six-month shares holding period in exchange for an early, assured allocation. The acquisition is being sponsored jointly by divisions of China Renaissance Holdings Ltd., Morgan Stanley, and Bank of America Corp.
According to Kuaishou’s rapidly expanding valuation, it may more than double following its Hong Kong IPO. After receiving US$3 billion in capital from a Tencent-led consortium, the Chinese company may be valued at US$ 60.9 billion, up from the US$ 28.6 billion estimate in a funding round last year.
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