Kuaishou headquarters is depicted on November 5, 2020 in Beijing, China.
VCG | Visual China Group | Getty Images
GUANGZHOU, China – Shares in Chinese short film company Kuaishou rose nearly 200% at the opening of its Hong Kong debut.
The technology company raised 41.28 billion Hong Kong dollars ($ 5.32 billion) with the initial public offering (IPO), after pricing its shares at 115 Hong Kong dollars each, at the top of its expected range.
Kuaishou shares opened at 338 Hong Kong dollars.
The company’s main business is a short video app and it makes money from users who buy virtual gifts to give to their favorite streamers. Kuaishou is also investing in new areas, such as e-commerce.
Kuaishou said his IPO was over-subscribed and in high demand. If the so-called over-allotment option is exercised, which allows the investment bank to issue more shares, then Kuaishou could raise more than $ 6 billion.
Ten key investors led by the Capital Group and involving BlackRock and Fidelity invested in the IPO.
Kuaishou’s listing will be an appetite test for Chinese technology companies, just as Beijing intensifies its scrutiny of the sector in areas ranging from anti-monopoly to data protection. In November, the Chinese government introduced rules on live purchases, which could impact Kuaishou.
The IPO is also another victory for the Hong Kong stock exchange, which has managed to attract high-profile technology companies and secondary listings. Chinese companies listed in the United States, including Alibaba and JD.com, also raised money in Hong Kong. CNBC reported that Chinese video company Bilibili, listed on Nasdaq, also filed for a secondary listing in Hong Kong.
Kuaishou faces stiff competition in China from rivals like Douyin, the Chinese version of TikTok owned by ByteDance, as well as Tencent’s WeChat messaging app.