ByteDance rival Kuaishou aims to raise up to US$5b in Hong Kong IPO: sources
[HONG KONG] Chinese online short video startup Kuaishou aims to raise up to US$5 billion in a Hong Kong initial public offering (IPO) as early as January, people with direct knowledge of the matter said, gearing up for the city's latest multibillion-dollar tech float.
The nine-year-old company, backed by social media and gaming leader Tencent Holdings, is targeting a valuation of over US$50 billion, the people told Reuters, requesting anonymity due to confidentiality constraints.
Kuaishou operates its eponymous app in China and overseas equivalents Kwai and Zynn. Its plans come as rival ByteDance - operator of Douyin at home and TikTok abroad - has become a target of US government concern over data security.
Kuaishou has hired Bank of America, China Renaissance and Morgan Stanley to work on the IPO and is looking to file for the float as soon as the end of October, the people said.
The company and banks did not respond to requests for comment.
Meaning "fast hand" in Chinese, Kuaishou's apps feature miscellaneous user-uploaded videos as well as live-streaming programmes through which vendors can promote consumer products.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The Kuaishou app had 430 million monthly active users as of June, versus over 500 million for Douyin, according to researcher CBNData.
Kuaishou's IPO would be a boost to Hong Kong's status as a global capital markets centre. Nearly US$20.3 billion worth of IPOs and secondary listings were conducted in Hong Kong over January-August, Refinitiv data showed, even as the city struggled with the economic fallout of the novel coronavirus outbreak and anti-government protests.
Ant Group plans to raise as much as US$30 billion in a dual listing in Hong Kong and Shanghai in October, in what could be the world's largest IPO.
ByteDance is also considering listing its domestic business in Hong Kong or Shanghai, Reuters reported in July before the US moved to bar US firms from dealing with it.
Kuaishou raised US$3 billion late last year in a pre-IPO funding round led by main backer Tencent. That round valued the company at close to US$30 billion, said two of the people.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Startups
Grab-led GXBank teams up with Zurich to offer affordable insurance
GoTo eyes private placement of 120.1 billion shares
SoftBank leads US$1 billion funding for UK self-driving startup Wayve
Singapore battles to revive struggling stock market
NSG BioLabs bags US$14.5 million funding; inks tie-ups with Merck, EnterpriseSG
Singapore’s Anywheel gets green light to expand fleet to 35,000