In the largest tech IPO since Uber, Kuaishou is aiming for a valuation of around $ 60 billion.
In Hong Kong, the makers of the Chinese video app Kuaishou are looking forward to the world's largest technology IPO in almost two years. In the subscription period before the first trading day on Friday, investors offered 5.4 billion dollars (about 4.5 billion euros) for the shares issued.
According to calculations by the financial agency Bloomberg, this is more than any other tech IPO since the transport service broker Uber in May 2019.
Kuaishou reached a market value of around $ 60 billion before it started trading. Kuaishou, which literally means “quick hand”, is the biggest competitor in China for the Chinese video app Douyin, which operates in the West under the name TikTok.
Using the app, which claims to have more than 300 million active users, you can create short videos yourself and share them with other users. However, live streaming is more important for the success of the app. You can see users who give make-up tips, cook or dance.
Kuaishou's biggest source of revenue is digital gifts viewers can send to the creators of the live video. An animated flower only costs a few cents. More expensive gifts can cost several hundred euros. Kuaishou and the video providers split the revenue.
Own online shop
In addition to advertising, Kuaishou also has its own online shop, where products can be purchased that live streamers advertise in their videos.
Although Kuaishou's business has grown rapidly in recent years, the start-up is grappling with a number of problems. Stricter rules for streaming services in China could become a burden.
Just days before the IPO, the Chinese copyright organization CAVCA came on the scene, accusing Kuaishou of numerous users violating music copyrights in their videos.
At the same time, Kuaishou is fighting bitterly with market leader Douyin and other providers for market share. The company was profitable in 2019, but posted a loss of 6.3 billion yuan in the first half of 2020, according to its listing on the stock exchange.
