The startup behind a TikTok-style video app soared on its market debut in Hong Kong, demonstrating investor hunger for IPOs and high-growth tech companies.
Kuaishou Technology's shares nearly tripled from their early-day IPO, representing a market value of more than $ 160 billion, from nearly $ 61 billion at the time the shares were sold.
Kuaishou is owned by Chinese tech giant Tencent Holdings Ltd. TCEHY supports and competes with ByteDance Ltd., the closely run Chinese company behind TikTok and its domestic sister app Douyin, with 1.48%. The $ 5.4 billion IPO is the largest in the world in more than a year, according to Dealogic.
The offering is the latest in a series of hot Hong Kong IPOs involving many Chinese tech startups or other companies that care for China's increasingly wealthy consumers. Last year, for example, the bottled water group Nongfu Spring Co.
jumped in its market debut while Ant Group Co.'s failed double listing in Shanghai and Hong Kong generated trillion dollar demand.
On Friday morning, Kuaishou shares nearly tripled to Hong Kong $ 320.20 per share from an IPO price of HK $ 115, which equates to $ 14.80. The increase reflected a big jump in the gray market on Thursday afternoon.
An expanded version of this story can be found on WSJ.com