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Written by: Qin Po
2021-02-01 14:45
The last update date: 2021-02-01 14:45
In the past week, the initial public offerings (IPOs) of Kuaishou Technology (hereinafter referred to as "Kaishou"), a short video and webcast platform on the mainland, have been extremely hot, and even employees of direct competitors have formed groups to "new shares" (subscribe for new shares). The IPO feast of more than 40 billion Hong Kong dollars not only ignited the enthusiasm of the Hong Kong capital market, but also attracted the attention of global funds and international financial media.
If all goes well, Kuaishou will be officially listed on the Hong Kong Stock Exchange on February 5. This is a pre-holiday "gift package" for Hong Kong stock investors before the arrival of the Lunar New Year.
Calculated from the extremely low winning rate, the enthusiasm for “newing” is likely to spread to the “hot speculation” on the first day of listing. If the stock price on the first day of listing doubles, Kuaishou will become another Hong Kong stock market with a market value of over 100 billion. Dollar company.
What is the business model of such a company with almost zero users in Hong Kong and few people in the past, except for keywords such as short video, live e-commerce, "sinking the market," and Tencent's shareholding?
More importantly, as the largest institutional investor in Kuaishou, Tencent is an ally or a competitor in the end?
Data shows that Kuaishou will issue 365 million shares, with a IPO range of 105 to 115 yuan per share, and plans to raise more than 40 billion yuan.
Based on the price range announced this time, Kuaishou’s valuation during the IPO has exceeded US$50 billion (approximately HK$387.6 billion) and between US$55.6 billion and US$60.9 billion (approximately 431 billion to 472.1 billion Hong Kong dollars), using over-allotment. The right valuation can increase to US$61.7 billion (approximately HK$478.3 billion), exceeding market expectations.
This situation is closely related to the popularity of ten cornerstone investors.
Kuaishou Technology.
(Authorized use by "Unicorn Knowing")
In this Kuaishou IPO, ten cornerstone investors from the United States, Singapore, and Canada spent US$2.5 billion (approximately HK$19.4 billion), accounting for 47% of the IPO funds raised. The lifting date of these shares is August 5 this year.
Among them, the U.S. fund Capital Group subscribed for approximately US$500 million (approximately HK$3.87 billion) of shares, with a ratio of 9.65%; Singapore’s two major sovereign investment funds GIC and Temasek both subscribed for 6.37%; Fidelity International, Invesco Holdings (Invesco )’S subscription ratio is 5.21%; BlackRock, Sunny Festive Limited, Canadian Pension Plan Investment Commission, Morgan Stanley Asia, and Abu Dhabi Investment Authority are also cornerstone investors.
Before the IPO, Tencent Mobile, a subsidiary of Tencent, was the largest institutional investor in Kuaishou, holding 21.57% of the shares in Kuaishou; Wuyuan Capital (formerly Morningside Capital) was the second largest institutional shareholder in Kuaishou, holding 16.6% of the shares; third DCM Capital, a major institutional shareholder, holds 9.23%; the fourth largest institutional shareholder is DST Asia IV, which holds 6.43%.
Since cornerstone investors accounted for nearly half of the funds raised, there are reports that some institutional investors do not hesitate to use personal relationships to book subscription shares in advance.
Considering that most of the cornerstone investors are long-term institutions, many international placement institutions are also long-term investments, and there will be very few shares circulating in the market. This indicates that Kuaishou will have a good chance of short-term speculation of new funds after its listing on February 5. "Hot speculation", with a market value exceeding US$100 billion (approximately HK$775.2 billion) at any time.
Such optimistic expectations have boosted the upsurge of investors’ "new branding", and retail investors have madly subscribed. A spokesperson for HSBC said on the evening of the first day of IPO (January 26) that the bank recorded a record of more than HK$100 billion in IPO loan applications. new highs.
"Kaishou", established in 2011, currently has the second largest share of the short video market in the Mainland after Douyin
The first short video that focuses on the ``sinking market''
Kuaishou has been touted by funds in Hong Kong this time, and it has a lot to do with the industry attributes of its "short video" and e-commerce live broadcast. It was established in 2011, and its current share of the short video market in the mainland is second only to Douyin, and exceeds Two Internet giants, Tencent and Ali.
If the prosperity of social media gave birth to Weibo and WeChat ten years ago, then the prosperity of short videos in the Mainland has directly made Kuaishou and Douyin the two top short videos in the Mainland market.
"North Kuaishou, Nan Douyin", "Kaishou Lao Tie, Douyin Trendy", "Quaishou Five Rings Outside, Douyin Five Rings", although these labels are a kind of ridicule, but from another perspective, it is also confirmed Kuaishou has a strong influence and appeal in the mainland market.
The above excerpt was recorded in the 251st issue of "Hong Kong 01" Weekly Report (February 1, 2021), "Kaishou's IPO feast, Tencent's role is critical". If you want to read the full text, please
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Selected content of 251 issue of "Hong Kong 01" Weekly News:
[Cover story] Elite thinking dominates the traditional economy to clamp down on Hong Kong's talent strategy dilemma
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After the reflection of the GME war, who will pay the bill after the bloodbath on Wall Street?
"Kaishou" listed on the new and old economy at HKU
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