- Kuaishou will price its 365.2 million shares at around USD 14.83 apiece
- A successful IPO will allow the company to reach a valuation of approximately USD 60 billion
Chinese video-sharing mobile platform Kuaishou Technology reportedly intends to raise around USD 5.42 billion through an IPO (initial public offering). According to reliable sources, Kuaishou’s IPO is likely to be the largest in Hong Kong for over a year.
For those unfamiliar, Kuaishou specializes in operating apps that enable user to upload live-streaming content or videos through which vendors usually endorse consumer products.
The online video site, which is backed by Chinese multinational technology giant Tencent Holdings Ltd., will price its 365.2 million shares at around USD 14.83 apiece. A successful IPO of around USD 6.2 billion will allow Kuaishou to reach a valuation of approximately USD 60 billion.
Moreover, the company is also planning to sell an additional 54.78 million shares a month after the listing. If these extra shares are sold, Kuaishou would be valued at USD 61.7 billion. Notably, the company had initially reached a valuation of USD 30 billion after it had secured USD 3 billion from investors in 2019.
If this Beijing-based video-sharing platform secures USD 6.2 billion, it will be the largest IPO ever conducted in Hong Kong, surpassing Budweiser Brewing’s USD 5.75 billion IPO conducted in September 2019. Moreover, Kuaishou’s deal will be the world’s largest IPO ever conducted since Uber Technologies’ USD 8.1 billion IPO which was conducted in the year 2019.
Sources close to the company stated that Kuaishou initially used to make significant profits, but it ramped up its marketing spending in 2019, further recording a loss. The impending investments should allow the company to normalize in the upcoming years.
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