• 177 days Will The ECB Continue To Hike Rates?
  • 177 days Forbes: Aramco Remains Largest Company In The Middle East
  • 179 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 579 days Could Crypto Overtake Traditional Investment?
  • 583 days Americans Still Quitting Jobs At Record Pace
  • 585 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 588 days Is The Dollar Too Strong?
  • 589 days Big Tech Disappoints Investors on Earnings Calls
  • 590 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 591 days China Is Quietly Trying To Distance Itself From Russia
  • 592 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 596 days Crypto Investors Won Big In 2021
  • 596 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 597 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 599 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 599 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 603 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 603 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 604 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 606 days Are NFTs About To Take Over Gaming?
5 Recession-Resistant Stocks To Add To Your Portfolio

5 Recession-Resistant Stocks To Add To Your Portfolio

There are growing predictions of…

US Airlines Take Another Blow with War

US Airlines Take Another Blow with War

With air travel down 60%…

  1. Home
  2. Investing
  3. Stocks

The Biggest Tech IPO Since Uber … For Farmers

Farmer IPO

If you’re looking for the next huge IPO along the lines of something ... Uber … look to this quirky tech company that’s shockingly not targeting young and trendy urban users, but farmers, instead. 

And it’s not the FarmersOnly dating app. 

It’s Chinese, and it’s shaping up to be the biggest tech IPO since Uber went public in 2019. 

Chinese Kuaishou (Beijing Kuaishou Technology Co. Ltd) is the pioneer of short videos, and it's backed by Chinese giant Tencent. If you haven’t heard of it, it should probably be on your radar. It debuted Friday in Hong Kong and hit a $160-billion valuation hours later. 

It’s main competitor? You guessed it … TikTok’s Chinese twin “Douyin”. 

Kuaishou was expected to raise $5.4 billion from the sale of 365 million shares, which would make it the biggest tech IPO in the world since Uber went public for $8.1 billion in May 2019. 

ByteDance, the owner of TikTok, was valued at $180 billion the last time it raised cash, and the competition will heat up significantly if it goes through with plans to list in Hong Kong this year, as well.

“For a sizeable IPO like this one I can’t recall any . . . reaching this sort of extraordinary performance,” Ronald Wan, chief executive and founder of Hong Kong investment firm Partners Capital, was quoted as saying by the Financial Times

While the competition will be still, Kuaishou has a niche: It’s focusing on an entirely different user base, with 85% coming from lower-tier cities and more rural areas. And it’s got more daily active users than even Twitter or Snapchat. 

Outside of China, it has been a complete unknown until its stunning Hong Kong debut when $160-billion perked up a lot of investor ears. But within China, what started in 2011 as a GIF-making tool, according to Protocol, has become a hugely popular short-form video and live-streaming platform that has big plans for ecommerce and gaming distribution. 

Douyin has some 600 million daily active users, as of August 2020, while Kuaishou has 776 monthly active users. 

But what’s attractive to investors is the online shopping element to this short-form video streamer. 

Protocol describes it as “part Twitch, part QVC”, and that’s a potentially lucrative vertical where influencers host live events to promote their products and Kuaishou gets a commission on anything sold via the platform. At the same time, it’s set up so that merchants can also sell through third parties due to partnership deals with giant ecommerce names such as JD.com and Alibaba.  

Could anything go wrong?

Yes, this is China, and the Communist Party is on one hand feeding its tech giants to get Beijing closer to global tech dominance, and on the other hand trying to put these unruly beasts back in their cage where they can control them. It’s a tricky balancing act that has recently brought tech leaders (particularly, Ant Group’s Jack Ma) into direct conflict with the country’s leadership. That means that there is a significant amount of regulatory uncertainty for any big tech company, and with this stunning IPO, Kuaishou will be under intense scrutiny.

By Michael Kern for Safehaven.com

Back to homepage

Leave a comment

Leave a comment