Kuaishou - a video sharing mobile app primarily used in China has been on its roll, where its user base continues to grow and could even rival the likes of Tiktok, which could be dubbed as one of the top social media apps in the world today. And an IPO for the company that built the app might jus be the biggest one ever since the pandemic has began.
Kuaishou's IPO Listing Price
CNN Business has reported that the app itself which now gains popularity from users based in China is eyeing an amount of up to 6.2 billion USD in stock market listing being set in Hong Kong. It was tipped to the news media outlet and website by a source that has been up close with the deal being processed. The plan would involve an amount of 365 million worth of shares which will be costed at a range of 105 up to 115 Hong Kong dollars - equivalent of around 13.55 up to 14.84 USD.
The report then made Kuaishou on top of the IPO listings being catered during the time of the pandemic brought about by the COVID-19. It could set the record for them as having the biggest listing by a tech company ever since the IPO listing that was done by vehicular booking app company Uber, where it saw a raise of up to 8 billion USD last May 2019 as per reported by the data from financial market provider Refinitiv.
As being reported by Financial Times, the flotation that could be felt by companies in China especially those which are heavily inclined with providing technological advancements and offerings could be somehow caused by some uncertain regulatory activities in its environment. Some of the biggest Chinese companies have been pursued to further suspensions, such as financial company Ant Group, which is being affiliated with the Alibaba Group which undergoes such investigation as well.
Kuaishou's Brief History and Background
Kuaishou has been a video-sharing app all throughout its course as an established company. Users of the app could maximize it by shooting and creating short videos, as well as live streaming their content where fans and other users can watch and tune in. The app generates revenue through the live-streaming aspect being provided by Kuaishou, wherein the users and viewers of the streamers can purchase various virtual items which they can send and give as gifts to some of their watched hosts from the app itself.
The money that was made form the live-streaming part has summed up the 84 percent of the overall earnings of the app in 2019, as being presented by the files from the Hong Kong Stock Exchange. Also, just like any other social media apps and sites today, it could gain money through advertisers that utilize the app for promoting and marketing their products and services.
With the listing being almost an official one, it is expected that the company would formalize it through pricing its shares, and putting it on a list by February 5.