Kuaishou seeks $ 5.4 billion in biggest tech IPO since Uber

Photographer: Qilai Shen / Bloomberg

Kuaishou Technology, the main rival of ByteDance Ltd. in China, seeks to raise up to $ 5.4 billion in Hong Kong in what would be the world’s largest IPO since Uber Technologies Inc.

The start of the short video, supported by Tencent Holdings Ltd. is selling 365 million shares at HK $ 105 to 115 each, under the terms of the deal obtained by Bloomberg News. The company will begin taking orders from investors Monday through January 29 and is expected to be listed on February 5.

Kuaishou is attempting the world’s largest internet IPO since the sale of Uber’s $ 8.1 billion U.S. stocks in May 2019, according to data compiled by Bloomberg. The Chinese startup’s IPO will also give Hong Kong’s already hot capital market new momentum and could become the largest in Asia since Budweiser Brewing Co. APAC Ltd. floated $ 5.8 billion.

Kuaishou, which means “quick hand” in Chinese, is one of China’s biggest internet success stories of the past decade, part of a generation of startups that have thrived with backing from Tencent. Along with TikTok’s parent ByteDance, the outfit co-created by Su Hua in 2013 pioneered the live, bite-sized video format that has since been adopted worldwide by Facebook Inc. Kuaishou’s impending debut could test investor appetite for its future. a bigger rival, last valued at $ 180 billion.

Kuaishou’s offer attracted 10 key investors, who agreed to subscribe for $ 2.45 billion in shares, based on the midpoint of the marketed range. The range includes The Capital Group, Temasek Holdings Pte, GIC Pte, BlackRock Inc. and Abu Dhabi Investment Authority, terms show, confirming previous Bloomberg News report. Major investors agreed to hold shares for six months in exchange for an early and guaranteed allocation.

Kuaishou’s valuation could more than double after its initial public offering in Hong Kong. A high-end price will value the Chinese company at $ 60.9 billion, up from the $ 28.6 billion it raised in a funding round last year, according to Pitchbook. Even at the low end, Kuaishou will still be valued at $ 55.6 billion.

ByteDance has long been an IPO contender, but got bogged down last year in the fight against the US ban on TikTok after the video service was called the threat to national security. The social media giant was in talks to raise $ 2 billion before listing some of its companies in Hong Kong, Bloomberg News reported in November.