Shares closed at $ 300 Hong Kong ($ 38.70) each, up 161% from the $ 115 Hong Kong ($ 14.80) issued by the company. It raised a total of 41.28 billion Hong Kong dollars ($ 5.32 billion) in the bid.
If the company exercises an over-allocation option, the high total could reach $ 47 billion in Hong Kong (almost $ 6.1 billion).
It is the largest technology list in the world since the Uber IPO in May 2019 and the largest global public offering from Saudi Aramco since December 2019, according to data provider Eikon Refinitiv.
Kuaishou is one of the most important social networking companies in China. The company backed by Tencent, whose name means “quick hand” in Chinese, has an eponymous short film and live streaming application. Its platforms and mini-programs have over 300 million daily active users.
Get most of the 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 listing. It also makes money from online advertising.
The company’s listing has been widely anticipated for months. In a recording this week, he said the offer was heavily oversubscribed.
“This is an incredible result,” said David Chao, co-founder and general partner of DCM, a $ 4 billion venture capital firm in Silicon Valley. His company was one of the first investors in Kuaishou, leading one of the first rounds of financing in 2014.
DCM still has a 9.2% stake in the social network, which has a value of over 14 billion dollars at the current market value on Friday. The company said it will generate a return about 600 times higher than the initial investment.
Focusing early on the growth of live streaming and virtual goods, Chao said the company used “a new form of monetization that the United States is just beginning to understand.”
Kuaishou is the latest company to make a name for itself in Hong Kong, which spent the past year reinventing itself as a hot spot for Chinese tech companies.
From 2019, Alibaba (BABA), NetEase (DETECTOR) and JD.com (JD) they held all the secondary listings in the Asian financial center. The city also made changes last year to attract more companies. The index compiler Hang Seng Indexes, for example, has launched a Nasdaq-like technology index to track the largest technology firms trading in the city.
Although his listing proves to be a major gain, Kuaishou continues to face significant challenges. He has 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 technology sector is facing a downturn in China. In his prospectus, Kuaishou alluded to this risk, stressing “the fact that internet business is highly regulated in China.”
– Laura He and Jill Disis contributed to this report.
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