China's Kuaishou aims to raise up to $5.42 bln in Hong Kong IPO - term sheet (updated)
25/01/2021 24:40
(Adds detail on deal)
By Scott Murdoch
HONG KONG, Jan 25 (Reuters) - Chinese online video company
Kuaishou Technology 1024.HK is aiming to raise $4.95 billion
to $5.42 billion in an initial public offering (IPO) that will
be the largest in Hong Kong for more than a year, according to a
term sheet reviewed by Reuters.
The online video site, backed by Tencent Holdings Ltd
0700.HK , will price 365.2 million shares at between HK$105 and
$HK115 apiece, the term sheet shows.
Kuaishou did not immediately respond to a request for
comment.
There is a so-called greenshoe option to sell a further
54.78 million shares in the 30 days after listing that could
take the total amount raised up to $5.7 billion to $6.2 billion.
The IPO will value Kuaishou at between $55.6 billion and $60
billion, pre greenshoe, the term sheet showed. If the extra
shares are sold it would take the market capitalisation to $56.3
billion to $61.7 billion.
Ten shareholders, led by Capital Group, have become
cornerstone investors accounting for about $2.45 billion, the
term sheet showed.
If Kuaishou raises $6.2 billion, it will beat the most
recent largest IPO in Hong Kong which was Budweiser Brewing
Company's 1876.HK $5.75 billion IPO in September 2019.
Above that, China Tower Corp 0788.HK raised $7.4 billion in
August 2018. Kuaishou's deal, at the top end, will be the
largest IPO in the world of a digital company since Uber
Technologies UBER.N raised $8.1 billion in May 2019.
Kuaishou, which means "fast hand" in Chinese, operates apps
that allow user-uploaded videos as well as live-streaming
programs through which vendors can promote consumer products.
The final price of the IPO will be set on Friday and
Kuaishou shares will start trading on the Hong Kong exchange on
February 5.
(Reporting by Scott Murdoch; Editing by Kenneth Maxwell & Shri
Navaratnam)
((Scott.Murdoch@thomsonreuters.com;))