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Deals

ByteDance rival Kuaishou files for Hong Kong IPO

(Reuters) - Chinese online short-video company Kuaishou Technology filed for a Hong Kong initial public offering (IPO) on Thursday that could raise up to $5 billion.

The Tencent-backed 0700.HK start-up operates its eponymous app in China and overseas equivalents Kwai and Zynn. Its listing plans come as rival ByteDance - operator of Douyin at home and TikTok abroad - has become a target of U.S. government concern over data security.

The nine-year-old company did not disclose the size, timetable or other key details of the offering in its preliminary prospectus.

People with direct knowledge of the matter have previously told here Reuters that Kuaishou was aiming to raise up to $5 billion in a Hong Kong IPO as early as January, valuating the company at more than $50 billion.

In its prospectus, Kuaishou said its loss widened to 68.09 billion yuan ($10.31 billion) in the six months ended June 30, from a loss of 268.7 million yuan a year earlier.

Revenue for the half-year rose nearly 50% to 25.32 billion yuan.

The company had 485 million average monthly users (MAUs) and 258 million average daily users (DAUs) on the Kuaishou app in the period.

Morgan Stanley Asia, Merrill Lynch Far East, and China Renaissance Securities (Hong Kong) are the joint sponsors of the offering.

Kuaishou raised $3 billion late last year in a pre-IPO funding round led by the main backer Tencent.

Reporting by Arpit Nayak in Bengaluru; Editing by Aditya Soni

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