Shares in TikTok rival Kuaishou nearly triple on Hong Kong debut
Kuaishou’s shares nearly tripled on its first day of trading in Hong Kong, bringing a huge profit to the Chinese streaming video platform and TikTok’s main competitor.
The company’s stock rose 194 percent in early trading on Friday to HK $ 338 (US $ 43.60), compared to the market price of HK $ 115.
That brought the company’s market capitalization to nearly $ 180 billion.
Kuaishou, which raised around $ 5.4 billion when it went public, competes in China with ByteDance, the owner of TikTok, and its Chinese sister app Douyin. ByteDance is also considering listing some of its companies this year, according to two people who are directly familiar with the matter.
More than 262 million Chinese users check the Kuaishou app an average of 10 times a day, spending an average of 86 minutes watching videos and chatting with the developers who created it.
These interactions create the app’s main source of income as Kuaishou cuts down the tips viewers give to content creators. These include small virtual gifts such as stickers that range from beer gifts for 1.5 Rmb (0.23 US dollars) to golden dragons for 1,400 Rmb. Such tips contributed 62 percent of Kuaishou’s sales in the nine months ended September 30 last year.
Total sales for the period increased 49 percent year over year to Rs 41 billion.