Kuaishou stock soars 160% in world's biggest IPO since 2019

Kuaishou's stock skyrocketed in value as the TikTok-like video app scored the world's biggest IPO since the coronavirus pandemic began. CNN's Selina Wang reports.

Posted: Feb 6, 2021 12:40 PM
Updated: Feb 6, 2021 12:41 PM

Kuaishou's stock skyrocketed in value Friday as the TikTok-like video app scored the world's biggest IPO since the coronavirus pandemic began.

Shares closed at 300 Hong Kong dollars ($38.70) apiece, marking a 161% jump over the 115 Hong Kong dollars ($14.80) the firm issued them at. It raised a total of 41.28 billion Hong Kong dollars ($5.32 billion) in the offering.

If the company exercises an over-allotment option, the total raised could hit 47 billion Hong Kong dollars (almost $6.1 billion).

It's the world's biggest tech listing since Uber's IPO in May 2019, and the largest public offering globally since Saudi Aramco's in December 2019, according to data provider Eikon Refinitiv.

Kuaishou is one of China's leading social media firms. The Tencent-backed company, whose name means "fast hand" in Chinese, owns an eponymous short-video and live-streaming app. Its platforms and mini programs have more than 300 million daily active users.

It gets most of its revenue from the live-streaming business, where users can buy virtual items and present them as gifts to their favorite hosts. Live-streaming transactions accounted for 84% of revenue in 2019, according to a stock exchange filing. It also makes money off of online advertising.

The company's listing had been widely anticipated for months. In a filing this week, it said that the offering had been heavily oversubscribed.

"This is an incredible outcome," said David Chao, co-founder and general partner of DCM, a Silicon Valley venture capital firm with $4 billion under management. His company was one of the earliest investors in Kuaishou, leading one of its first funding rounds back in 2014.

DCM still has a 9.2% stake in the social network, which is worth more than $14 billion at current market value on Friday. The firm said that would generate a return of roughly 600 times its original investment.

By focusing early on the rise of live-streaming and virtual goods, Chao said the company has tapped in on "a new form of monetization that the US is just starting to understand."

Kuaishou is the latest company to make a splash by going public in Hong Kong, which has spent the last year reinventing itself as a hot venue for Chinese tech firms.

Since 2019, Alibaba, NetEase and JD.com have all held secondary listings in the Asian financial hub. The city also made changes last year intended to attract even more companies. Index compiler Hang Seng Indexes, for example, launched a Nasdaq-like technology index to track the largest tech firms that trade in the city.

Though its listing proves a major win, Kuaishou still faces significant challenges. It's long competed with industry leader ByteDance, which owns the Douyin app — the Chinese version of TikTok.

The listing also comes at a time when the tech sector is facing a regulatory clampdown in China. In its prospectus, Kuaishou alluded to that risk, pointing to "the fact that the internet business is highly regulated in China."

— Laura He and Jill Disis contributed to this report.

Mississippi Coronavirus Cases

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Cases: 314509

Reported Deaths: 7247
CountyCasesDeaths
DeSoto21626259
Hinds20359415
Harrison17934309
Rankin13634278
Jackson13447246
Madison10099217
Lee9980174
Jones8381163
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Tate334084
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Holmes189173
Clay185454
Stone182833
Tallahatchie178841
Clarke178080
Calhoun170832
Yalobusha164338
Smith162434
Walthall133945
Greene130633
Lawrence128624
Montgomery126942
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Perry126338
Amite123142
Carroll121829
Webster114532
Jefferson Davis107133
Tunica105726
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Franklin83823
Quitman80916
Choctaw76418
Wilkinson67331
Jefferson65728
Sharkey50217
Issaquena1686
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Alabama Coronavirus Cases

Cases: 532895

Reported Deaths: 11001
CountyCasesDeaths
Jefferson771431528
Mobile41089808
Madison34837505
Tuscaloosa25810454
Montgomery24355588
Shelby23730249
Baldwin21191309
Lee15892171
Calhoun14522316
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St. Clair9702243
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Walker7246277
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Jackson6815112
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Russell443238
Chilton4308112
Franklin426282
Covington4136118
Tallapoosa4039152
Escambia393977
Chambers3578123
Dallas3557152
Clarke351161
Marion3130101
Pike311377
Lawrence300798
Winston275673
Bibb261564
Geneva251477
Marengo249664
Pickens234761
Barbour231756
Hale223277
Butler216469
Fayette212562
Henry189044
Cherokee184745
Randolph181742
Monroe178040
Washington167639
Macon159950
Clay156857
Crenshaw152757
Cleburne149141
Lamar142935
Lowndes139053
Wilcox127130
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Coosa107928
Perry107826
Sumter104832
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