The Strategist

Chinese Kuaishou holds the largest IPO in two years in Hong Kong

02/01/2021 - 07:15

China's second-largest short video service Kuaishou Technology has raised $5.4bn during an IPO in Hong Kong, Bloomberg reports.

Mcy jerry
Mcy jerry
The offering was the largest for the Hong Kong stock exchange since November 2019, when Alibaba Group floated its shares on the exchange, managing to raise about $13bn.

The service, backed by Tencent Holdings, sold 365 million of its shares to investors at a price of HK$115. 

As a result, the service's market capitalization reached $60.9 billion, more than double the estimated value of the company in its last funding round last year.

At the same time, the service allows for the sale of an additional issue option in case of high demand for shares. In this case, the amount of funds raised could reach $6.2bn. 

Kuaishou will be listed on the Hong Kong Stock Exchange on February 5. In case the option is exercised, the market capitalisation of the company will reach $61.7bn.