Chinese cloud computing services provider Kingsoft Cloud Holdings Ltd. raised $510 million in its US initial public offering (IPO) Friday, the first US listing of a Chinese company after a series of financial fraud scandals involving peers, reported Caixin.
The company priced its IPO of 30 million American depositary shares at $17 apiece, the midpoint of its suggested range of $16 to $18 a share, and sold 5 million more shares than expected.
The stock debuted on Nasdaq at $20.37 and closed at $23.84, a 40% jump from the IPO price. The listing, the biggest by a Chinese company this year, picked a tricky time as the Covid-19 pandemic has largely stalled the IPO market. US investors are wary of Chinese companies after Starbucks challenger Luckin Coffee Inc. disclosed that its chief operating officer faked nearly half the revenue reported for the final three quarters of last year, sparking a sell-off of its shares and questions about other US-listed Chinese companies’ financial results.
Kingsoft Cloud’s clients are concentrated in the internet and finance sectors and include big names like short-video platform operator ByteDance and video streaming service provider Bilibili, which benefit from remote working, gaming and learning online amid the Covid-19 pandemic.