Cloud IPO is fresh air for U.S China listings

Kingsoft

06/05/2020 03:06

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Robyn Mak
    HONG KONG, May 6 (Reuters Breakingviews) - Lei Jun is eyeing
a healthy $3.6 bln valuation for his cloud venture. The Xiaomi
founder makes for a tried and tested boss for Kingsoft, a strong
rival to Alibaba and Tencent. In the wake of the Luckin scandal
and Covid-19, it looks as good as any Chinese company in New
York can.
    Full view will be published shortly.
    On Twitter https://twitter.com/mak_robyn
    
    CONTEXT NEWS
    - China's Kingsoft Cloud Holdings is raising up to $450
million in a U.S. initial public offering which could value the
company at up to $3.6 billion, according to an updated
prospectus filing dated May 4.
    - The company, which is a subsidiary of Hong Kong-listed
Kingsoft Corp, is selling 25 million American depositary shares
(ADS) between $16 and $18 per ADS. 
    - Smartphone maker Xiaomi, founded by Kingsoft Corp Chairman
Lei Jun, owns 15.8%. 
    - The company made a net loss of $167 million on revenue of
$568 million of revenue in 2019.
    - For previous columns by the author, Reuters customers can
click on  MAK/   
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    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Kingsoft Cloud prospectus    https://www.sec.gov/Archives/edgar/data/1795589/000119312520110080/d805184df1.htm#toc
IFR: Kingsoft tests US bid for China     urn:newsml:reuters.com:*:nL3N2CB2KA
China's Kingsoft sets terms for U.S. listing, first major IPO
since coronavirus crisis     urn:newsml:reuters.com:*:nL1N2CM25D
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Una Galani, Jamie Lo and Sharon Lam)
 ((robyn.mak@thomsonreuters.com; Reuters Messaging:
robyn.mak.thomsonreuters.com@reuters.net))