Tencent-backed video sharing app Kuaishou kicks off Hong Kong IPO targeting US$5 billion
- Kuaishou Tech will launch its Hong Kong IPO in a price range that tops at HK$93 per share, which could help it raise US$5 billion
- The loss-making company is poised to expand into online payment services, following a similar move by its competitor Douyin
Kuaishou Technology, the short-video platform backed by Tencent, will offer its shares at a maximum price of HK$93 each, as it aims to raise up to HK$38.6 billion (US$5 billion) in Hong Kong’s biggest initial public offering for 14 months.
The upcoming sale could value Beijing-based Kuaishou at above US$50 billion, bigger than its competitor Bilibili’s US$44 billion capitalisation and iQiyi at US$16.6 billion. It would be Hong Kong’s second-largest flotation, after Alibaba Group Holding’s US$13 billion secondary listing in November 2019.
The HK$93 is the top end of a range for the final share price, though the bankers declined to reveal the bottom end of the scale.
“We are actively developing additional monetisation opportunities to diversify our revenue streams through online games, online knowledge-sharing and other products and services,” the company said in its preliminary listing document to the Hong Kong stock exchange.
China’s population of mobile internet users jumped to 873 million in 2019, the world’s largest digitally connected community. But internet access and content are also among the most heavily regulated in the world, which potentially restricts the gains web-based platforms can make.
The joint sponsors for Kuaishou’s IPO include Morgan Stanley, Bank of America and China Renaissance.