[New Stock IPO]Kuaishou’s roadshow starts from today and next week’s target valuation is increased to 770 billion yuan, and the market entry fee is 4,696 yuan per lot-Hong Kong Economic Times-News Channel-Market News-IPO

The short video platform Kuaishou has passed the Hong Kong Stock Exchange （00388）
The listing hearing will be listed in early February and is expected to become the “first short video stock.” According to sources, Kuaishou will conduct analyst roadshows and investor needs assessments from January 18 to 22. According to reports from mainland media, the company’s valuation is between US$65.8 billion and US$98.7 billion (approximately HK$510 billion to HK$764.9 billion). ), the P/E ratio in 2022 will range from 30 times to 46 times.

Mainland media continued to point out that Kuaishou plans to sell 415 million shares. The public offering will only account for 2.5% of the global offering. After the reversal mechanism, it will rise to 7%. The admission fee for one lot (50 shares) is about 4696 yuan.

Foreign media reported earlier that Kuaishou’s Hong Kong listing target raised US$5 billion (approximately HK$39 billion), which is expected to surpass Jingdong last year （09618）
The fund raised in Hong Kong was HK$34.56 billion, making it the highest amount of new shares to be issued in more than a year. Kuaishou declined to comment on the news.

Key points of Kuaishou prospectus

Kuaishou passes the roadshow this week and next week’s IPO dismantling the three highlights of Kuaishou, which can be seen【Next page】

Morgan Stanley: Market value of up to 750 billion yuan

The Morgan Stanley report, one of the sponsors, predicts that the market value of Kuaishou ranges from US$70 billion (about HK$542.5 billion) to US$97 billion (about HK$744 billion). Damon also expects that the group’s compound annual growth rate from 2020 to 2023 will reach 42%, and its revenue will increase to 168 billion yuan in 2023. The report also predicts that Kuaishou will have more than 600 million monthly active users in the second quarter of 2023.

However, Morgan Stanley also pointed out that Kuaishou’s profitability is weak. In the second quarter of last year, Kuaishou’s user growth for Douyin, a subsidiary of ByteDance, was flat. Kuaishou’s live broadcast business accounted for 52% of revenue in the third quarter of last year, and its revenue in the second quarter fell 4% year-on-year.

Bank of America: Market value of up to 708 billion

The Bank of America report, one of the sponsors, expects revenue in 2022 to reach 8.6 billion yuan, with a valuation of 504 billion to 708 billion Hong Kong dollars, and a 2022 price-to-earning ratio ranging from 49 times to 69 times.

Merrill Lynch also expects the company’s business models such as e-commerce and online advertising to earn more revenue in 2022.

Tencent holds 21% of the shares in Kuaishou, but Kuaishou lost 6.3 billion yuan in the first half of the year. For details, please click【Next page】

According to preliminary prospectus data, Kuaishou averaged 305 million daily active users in the first nine months of last year, and each daily active user spent more than 86 minutes on average; average monthly active users reached 769 million.

Kuaishou’s pre-IPO investors included Tencent （00700）
, Sequoia Capital, Baidu (US: BIDU), Temasek, Boyu Capital, Morningside Capital, etc. Tencent has invested in both the D and F rounds of Kuaishou. It currently holds 21.57% of Kuaishou and is the largest institutional shareholder in Kuaishou.

Kuaishou sponsors are Bank of America, China Renaissance Capital and Morgan Stanley.

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Editors: Chen Jianting, Xie Zhuorong

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