While the COVID-19 pandemic has largely stalled the market for initial public offerings, a Chinese cloud-computing company still managed to raise more than half a billion dollars in a U.S. IPO. Kingsoft Cloud Holdings Ltd. (KC) priced its IPO of 30 million American Depositary Shares at $17 apiece, raising $510 million at a valuation of roughly $3.7 billion. The company priced the shares at the midpoint of its suggested range of $16 to $18, and sold 5 million more shares than it was expecting earlier in the process. Kingsoft sells cloud-computing services in China, where Alibaba Group Holding Ltd. (9988.HK) and Tencent Holdings Ltd. (0700.HK) compete in the sector. It is a spin-off from Chinese software giant Kingsoft Corp. Ltd. , but calls itself an independently operated company at various times in its filings with the Securities and Exchange Commission. The company's revenue is growing, but so are its losses: While sales grew from 1.24 billion RMB ($174.5 million) to 2.22 billion RMB to 3.96 billion RMB from 2017 to 2019, losses increased from 714.3 million RMB to 1.01 billion RMB to 1.11 billion RMB. The stock is now expected to begin trading Friday morning on the Nasdaq exchange under the ticker symbol KC.
-Jeremy C. Owens; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 08, 2020 06:09 ET (10:09 GMT)
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