Unwelcome appearance

25 January 2021 By Robyn Mak, Yawen Chen Follow @mak_robyn

The Chinese video app is eyeing a valuation of up to $62 bln, over 30 times forecast EBITDA. Top sovereign funds have backed the premium multiple, about three times that of smaller peers. But a costly battle with TikTok-owner ByteDance looms large over its future prospects.

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Context News

Tencent-backed Kuaishou Technology is targeting a valuation of up to $62 billion in its Hong Kong initial public offering, according to a term sheet seen by Breakingviews.

The company aims to sell 365 million new Class B shares at an indicative price range of HK$105 and HK$115 each. Including the over-allotment option, the company and selling shareholders would raise up to $6.2 billion.

Kuaishou was aiming for a market capitalisation of more than $50 billion, Reuters reported in September.

Ten cornerstone investors including Singapore’s Temasek and the Abu Dhabi Investment Authority, have agreed to purchase shares worth $2.45 billion, or about 45% of the base offer at the high end of the price range.

The IPO is expected to price on Jan. 29 and the shares are due to start trading on Feb. 5.

(The introduction has been corrected to state multiple is about three times peers, not three times higher than peers.)

Context News

Tencent-backed Kuaishou Technology is targeting a valuation of up to $62 billion in its Hong Kong initial public offering, according to a term sheet seen by Breakingviews.

Kuaishou was aiming for a market capitalisation of more than $50 billion, Reuters reported in September.

The IPO is expected to price on Jan. 29 and the shares are due to start trading on Feb. 5.

(The introduction has been corrected to state multiple is about three times peers, not three times higher than peers.)

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