Kingsoft Cloud latest China firm to seek Hong Kong dual primary listing

FILE PHOTO: The logo of Hong Kong Exchanges & Clearing Ltd. (HKEX) is seen at the financial Central district in Hong Kong, China September 14, 2020. EUTERS/Tyrone Siu

Cloud computer firm Kingsoft Cloud has filed documents for a dual primary listing in Hong Kong, becoming the latest Chinese company to seek a diversified listing in the Asian financial hub.

The New York-listed firm filed its initial prospectus with the Hong Kong Stock Exchange late on Wednesday to press ahead with the listing, which it had flagged in March it was exploring.

E-commerce company Alibaba Group said on Tuesday it was seeking to convert its secondary listing in Hong Kong to a dual primary listing which would allow it to apply for Stock Connect, the scheme which makes it easier for mainland Chinese investors to buy Hong Kong stocks.

Secondary listed stocks are not included in the Stock Connect scheme.

Kingsoft Cloud, in a statement, did not identify a timeline or how much it could look to raise in the Hong Kong listing.

The company has not decided on the size of the deal which would depend on its share price closer to the launch of the transaction, said one source with direct knowledge of the matter.

The source could not be named as the information was not yet made public.

Kingsoft Cloud did not immediately respond to a request for comment. The company, which was listed in New York in May 2020, has endured a volatile period, with its shares down 77% year to date amidst the Chinese regulatory crackdown on the country’s tech sector.

Its shares were sold in the IPO at $17 each and the stock closed on Wednesday at $3.47, giving it a market capitalisation of $845 million.

Reuters

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