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Kuaishou Technology to raise up to $5.4b from Hong Kong IPO

written by Bella Palmer

The company is selling 365.2 million new shares at an indicative range of 105 to 115 Hong Kong dollars

Chinese video-clip and live-streaming group Kuaishou Technology is seeking to raise up to $5.4 billion from an initial public offering, joining a string of tech companies from China that have listed in Hong Kong.

Kuaishou on Monday began taking investor orders for the stock sale ahead of a listing on Feb. 5, a term sheet showed. The company is backed by Tencent Holdings Ltd. and competes with ByteDance Ltd., the Chinese company behind TikTok.

With a minimum deal size of $4.95 billion, the IPO would be the largest in the world since late 2019, when state-controlled Saudi Arabian Oil Co., commonly known as Aramco, raised $29.4 billion, Dealogic figures show. It would also be the largest in Hong Kong since Budweiser Brewing Co. APAC Ltd., the Asian unit of Anheuser-Busch InBev SA., raised $5.75 billion in September 2019.

The company is selling 365.2 million new shares at an indicative range of 105 to 115 Hong Kong dollars, according to a term sheet seen by The Wall Street Journal. It plans to fix the offer price on Jan. 29. At the top of the range, the deal implies a market capitalization of $60.9 billion.

The offering size could increase to up to $6.2 billion after underwriting banks exercise an option to sell 15% more shares.

Kuaishou has secured 10 cornerstone investors, including Capital Group, Temasek, BlackRock Inc., Canada Pension Plan Investment Board and Boyu Capital. They agreed to buy a combined $2.45 billion worth of the stock wherever the deal prices.

Units of Morgan Stanley, Bank of America Corp. and China Renaissance Holdings Ltd. are acting as joint sponsors for the deal.


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