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Monday, January 18, 2021, 18:25
Mainland's Kuaishou HK IPO 'could value firm at US$60b'
By Reuters
Monday, January 18, 2021, 18:25 By Reuters

In this undated photo, visitors look at information boards in Kuaishou's booth during a high-tech exhibition in Beijing. (PHOTO PROVIDED TO CHINA DAILY)

HONG KONG - The Chinese mainland’s online short video company Kuaishou will open the books for its initial public offering in the Hong Kong Special Adminsitrative Region next Monday to raise at least US$5 billion in a deal that could value the company at about US$60 billion, according to two sources with direct knowledge of the matter.

Kuaishou’s apps feature user-uploaded videos as well as live-streaming programmes through which vendors can promote consumer products

Analysts from the investment banks working on the deal started briefing potential investors on Monday as part of the pre-marketing roadshow, the people said, declining to be named as the information is not public yet.

Kuaishou, which is backed by Tencent Holdings Ltd, did not immediately respond to a request for comment.

Kuaishou has aimed for a market capitalisation of more than US$50 billion since it began preparing for a public markets deal, Reuters reported in September.

That valuation could rise to about US$60 billion, the sources said, based on current feedback from investors.

ALSO READ: ByteDance rival Kuaishou mulls US$5 billion Hong Kong IPO

An exact valuation for Kuaishou will be determined after the meetings that are due to be held this week, the sources said, and could change before the deal is launched.

Kuaishou declined to comment on the valuation.

A deal of at least US$5 billion would be a strong start for the HKSAR’s capital markets in 2021, and would be the largest IPO since Budweiser Brewing Company raised US$5.75 billion in September 2019.

Kuaishou’s apps feature user-uploaded videos as well as live-streaming programmes through which vendors can promote consumer products.

The video provider said it had an average of 262.4 million daily users for the nine months ending in September 2020 in its updated filings on the Hong Kong Stock Exchange published ahead of the deal’s launch next week.

Kuaishou’s IPO is sponsored by Bank of America, China Renaissance and Morgan Stanley.


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