The startup behind a TikTok-style video app skyrocketed on its Hong Kong market debut, making the latest demonstration of investor hunger for initial public offerings and high-growth tech companies. Kuaishou Technology shares nearly tripled from their IPO price in early trading on Friday, implying a market value of more than $ 160 billion, up from nearly $ 61 billion when the company was valued. sale of shares.
Kuaishou is backed by Chinese tech giant Tencent Holdings Ltd. TCEHY 1.48% and competes with ByteDance Ltd., the Chinese firm closely behind TikTok and its domestic sister app Douyin. The initial public offering of $ 5.4 billion is the world’s largest in more than a year, according to Dealogic. The offering is the latest in a series of IPOs in Hong Kong, many of which involve Chinese tech startups or other companies catering to China’s increasingly wealthy consumers. Last year, for example, bottled water group Nongfu Spring Co. 9633 rose -2.10% on its market debut, while Ant Group Co.’s failed double listing in Shanghai and Hong Kong generated trillions. dollars of demand. In trading on Friday morning, Kuaishou’s stock nearly tripled to HK $ 320.20 per share, compared with an IPO price of HK $ 115, equivalent to $ 14.80. The increase echoed a big jump in gray market trading on Thursday afternoon. An expanded version of this story can be found at WSJ.com