Tencent-backed video sharing app Kuaishou kicks off Hong Kong IPO targeting US$5 billion

Kuaishou Tech will launch its Hong Kong IPO in a price range that tops at HK$93 per share, which could help it raise US$5 billion

The loss-making company is poised to expand into online payment services, following a similar move by its competitor Douyin

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Published: 8:26pm, 21 Jan 2021Updated: 9:57pm, 23 Jan 2021

Kuaishou Technology, the short-video platform backed by Tencent, will offer its shares at a maximum price of HK$93 each, as it aims to raise up to HK$38.6 billion (US$5 billion) in Hong Kong’s biggest initial public offering for 14 months.

The upcoming sale could value Beijing-based Kuaishou at above US$50 billion, bigger than its competitor Bilibili’s US$44 billion capitalisation and iQiyi at US$16.6 billion. It would be Hong Kong’s second-largest flotation, after Alibaba Group Holding’s US$13 billion secondary listing in November 2019.

Kuaishou will be the first of three video-sharing applications to tap capital in Hong Kong. Nasdaq-listed Bilibili is aiming to raise capital in Hong Kong via a secondary listing in the first quarter, while Douyin is waiting in the wings to file its fundraising plan.

Kuaishou is likely to start its Hong Kong public offering next Tuesday, with the final pricing to be set around January 28 to 29, in time for its shares to commence trading in early February before the start of the Lunar New Year holiday, according to bankers familiar with the schedule.

The HK$93 is the top end of a range for the final share price, though the bankers declined to reveal the bottom end of the scale.

The short video-sharing platform Kuaishou is seeking US$5 billion in its Hong Kong IPO. Photo source: Getty Images