Tencent-backed Kuaishou prepares for $5bn Hong Kong IPO – Nikkei Asian Review

HONG KONG — Chinese online video startup Kuaishou, the Tencent Holdings-backed challenger to the domestic version of ByteDance’s TikTok, is preparing for an initial public offering that would value the company at around $50 billion, according to three people familiar with the situation.

The company, which runs its eponymous app in China as well as the Kwai and Zynn apps in overseas markets, has hired Bank of America and investment bank China Renaissance, among others, as sponsors for its IPO and could file a preliminary prospectus with the Stock Exchange of Hong Kong next month, the people said.

While the company has not yet finalized how much of a stake would be sold through the IPO, if it offered the typical 10% shareholding to the public, that could yield proceeds of $5 billion or more.

Kuaishou’s investors, which include the Chinese arm of U.S. fund Sequoia Capital, Singapore sovereign fund Temasek Holdings and Jack Ma-backed private equity company Yunfeng Capital, could offload some of their stakes, the people familiar with the deal said.

Tencent invested $2 billion last year when the company raised $3 billion at a valuation of $29 billion, according to Chinese media.

Kuaishou’s IPO plans come as new listing volumes surge in Hong Kong. More than $21 billion has been raised by companies through IPOs and secondary listings so far this year, with five new-share sales currently open for subscription.

China Bohai Bank holds the title of the largest Hong Kong IPO so far this year, after raising $2 billion in