Kuaishou technology friday debut of Hong Kong stock exchange took a huge high rise something around 300 percent. Its shares marketed so well and already its the second most talked video app counting after Tiktok owner ByteDance.
Just after the beginning gong , the stock sold at more than HK$330 nearly triple the figure of HK$115 which was initial public offer which valued the company at around $179billion.The firm that’s been supported by Chinese tech big name Tencent, marketed around $5.4billion in debut scoring its IPO the biggest since Uber’s $8.1billion portion selling in 2019.
Kuaishou technology was launched in 2012 for the purpose of preparing and sharing GIFs but it developed into a short form video which later did add a jovial live steam service. This even takes competition with Douyin, Chinese version of TikTok and does money making from this virtual, prize offering where followers themselves give money to content creators.
Douyin has much daily active users as compared to Kuaishou.Kuaishou’s big inauguration-day valuation places it in direct competition with ByteDance, that previously raised funds at a $180 billion valuation. At $179 billion, Kuaishou topped the market scores of few of the United States’ most popular tech companies, like Twitter ($45.95 billion) and Uber Technologies ($107.1 billion).
The impassioned investor hunger for tech IPOs — amidst historical below the mark interest rates — triggered traders view past China’s more belligerent recent regulatory gesture towards tech industries, including live-streamers.
Now Kuaishou can make use of its windfall to turbocharge growth else strive towards profitability. The first nine months of 2020, company posted a balanced net loss of RMB 7.2 billion ($1.1 billion), comparing to a balanced profitability of RMB 1.8 billion in the same time a year earlier. Likewise ByteDance with TikTok, Kuaishou also engines a version of their service intending to the international market, namely Kwai, creating a focus hub for growth and investment.
Former Google employee Su Hua and Cheng Yixiao, the two billionaires and co-founders of Kuaishou were also profited by the IPO. At the inaugural price of HK$338, Su’s net cost were rising more than $21.1 billion and Cheng’s leaped to $14.7 billion, as tells Bloomberg.