Chinese video-sharing app Kuaishou plans to raise up to 6.2 billion U.S. dollars on its debut IPO in Hong Kong stock market on the 5th of next month. Quoting the listing schedule, media reported that Kuaishou will attract up to $5.42 billion by IPO in the 105-115 Hong Kong dollar category per share.
The Kuaishou IPO is the largest in more than a year on the Hong Kong stock market. It will raise 365.2 million shares to $4.95 billion as the lower limit for temporary public offering.
Under the IPO, the company can sell additional 54.78 million shares within 30 days of listing by exercising the Green Shoe option. Therefore, they might expand from at least $5.2 billion to up to $6.2 billion.
According to Time Sheet, Kuaishou’s corporate value ranges from $55.6 billion to $60 billion before the Green Shoe event. And $56.3 billion to $61.7 billion during the exercise.
Capital Group and 10 major investors will be allocated a $2.45 billion stake in the IPO of Kuaishou.
If Kuaishou conspires to the upper limit, it will be the second-ever global digital company since May 2019 when U.S. distribution service Uber Technology’s $8.1 billion.
They will determine the final public price on February 29. And the first trading day will be on the Hong Kong Stock Exchange on February 5.
Kuaishou recorded operating income of 8.3 billion yuan, 20.3 billion yuan, 39.1 billion yuan, and 40.7 billion yuan in the 2017-2019 and the 1st to 3rd quarter of 2020.
Facing upcoming IPO, Kuaishou showed an average daily sales of 160 million yuan in 2020
As of September 30 last year, Kuaishou had 35 million daily active customers in China. With an average monthly active customer reaching 769 million. The cumulative number of video clips has reached 29 billion.
Kuaishou, founded in 2011, has grown rapidly with the investment of Tung Xun, China’s largest Internet service provider. It is also one of the biggest competitor of Byte Dance, which runs the video app TikTok.
Kuaishou, co-founded by Feng Xiaochun and Yang Yuan-si, mainly deals with records and life-related videos. And millions of new videos are uploaded every day.
The number of users surpassed 100 million in June 2015 and exceeded 300 million in April 2016. On June 5, 2018, Kuaishou acquired all of its shares in the video site Acfun.
