The Chinese short video company Kuishou is expected to raise HK$42 billion($5.4 billion), the biggest tech IPO since U.S. company Uber with $8.1 billion in May 2019.
Chinese tech companies continued to tap into Hong Kong's stock market amid the US-China tension, giants like JD.com Inc. and Netease Inc. went for initial public offering in Hong Kong last year.
Tencent-backed Chinese tech company Kuaishou will go public on Friday in Hong Kong and is expected to raise at least HK$42 billion($5.4 billion), the price has surged in the grey market after its announcement.
The Chinese short-video app operator marked Hong Kong's hottest IPO ever after Ant's IPO failed to deliver in 2020 by the 1,204 times subscription ratio in the local retail offering.
Despite that Ant's IPO suspended, "the Hong Kong market still outperformed its peers and beat its 2019 performance," Edward Au from Deloitte China wrote in a note.
Chinese tech companies continued to tap into Hong Kong's stock market last year amid the US-China tension. The US government added dozens of Chinese companies, including the social app WeChat's parent company Tencent and Chinese drone manufacturer DJI Technology, to blacklist for national security issues in 2020.
Over 140 companies went for IPO fundraising, pushed a 10-year high record on Hong Kong's stock exchange in 2020 at US$50.83 billion, according to Refinitiv data.
"Hong Kong will continue to be one of the leading listing destinations next year, driven by the growing ecosystem of innovative and New Economy companies," analysts from KPMG said in a note in December 2020.
