Tiktok rival Kuaishou surges 200% in $5.3 billion Hong Kong debut

Shares of Chinese short video company Kuaishou rose nearly 200% at the open on its debut in Hong Kong. The technology firm raised 41.28 billion Hong Kong dollars ($5.32 billion) from the initial public offering (IPO) after pricing its shares at 115 Hong Kong dollars each, at the top of its expected range. Kuaishou shares opened up at 338 Hong Kong dollars. The stock later slipped from those highs, but was still more than 160% higher than its list price in afternoon trade.

The company’s main business is a short video app and it makes money from users who buy virtual gifts to give to their favorite streamers. Kuaishou is also pushing into new areas such as e-commerce. Kuaishou said its IPO was oversubscribed with demand high. If the so-called overallotment option is exercised, which allows the investment bank to issue more shares, then Kuaishou could raise over $6 billion. Ten cornerstone investors led by Capital Group and involving BlackRock and Fidelity invested in the IPO.

Tiktok rival Kuaishou surges 200% in $5.3 billion Hong Kong debut, CNBC, Feb 5