Kingsoft Cloud raises $510m in first China IPO in US since virus outbreak

Times Square is seen through the window of the Nasdaq MarketSite in New York, U.S., on Thursday, Aug. 4, 2016. Photographer: Victor J. Blue/Bloomberg

Chinese cloud computing company Kingsoft Cloud Holdings Ltd raised $510 million in its U.S initial public offering, the first Chinese company to list in the United States since the coronavirus pandemic outbreak sent markets tumbling.

The cloud service provider had planned to sell 25 million shares but increased the size of the deal to 30 million on Friday on the back of better than expected demand from shareholders, parent company Kingsoft Corp said in a statement on Friday.

The deal represented 13.9% of the company’s issued capital and was priced at $17 per share, in the middle of its expected range, valuing the Xiaomi-backed group at $3.7 billion.

Loss-making Kingsoft offers cloud infrastructure as well as enterprise cloud and artificial intelligence services.

Cloud computing has so far been one of the sectors boosted by the novel coronavirus outbreak as it drives more businesses to operate digitally and rely on cloud computing.

The value of the company will rise if a so called ‘greenshoe’ option is exercised and an extra 4.5 million shares are sold within the next 30 days by the banks which underwrote the deal.

Existing shareholders Kingsoft Group, Xiaomi and Carmignac Gestion anchored the IPO, with Kingsoft buying up to $25 million of the stock offered, and Xiaomi and Carmignac buying up to $50 million each, Kingsoft said.

Kingsoft is the first major U.S. IPO by a company that is neither a biotechnology firm nor special purpose acquisition company (SPAC) since Canadian waste management company GFL Environmental in early March. Biotech and SPAC IPOs are typically immune to broader market swings.

The IPO was also the first gauge of U.S. investor demand for Chinese companies going public in New York after a fraud scandal sent shares in Chinese coffee chain Luckin Coffee <LK.O> into freefall last month.

The company is due to start trading on the Nasdaq stock exchange on Friday under the symbol “KC.”

JPMorgan, UBS, Credit Suisse and CICC led the deal.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.