|Bid||19.55 x 1000|
|Ask||20.08 x 1000|
|Day's Range||18.25 - 20.32|
|52 Week Range||17.01 - 26.89|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
BEIJING, May 22, 2020 -- Kingsoft Cloud Holdings Limited (NASDAQ: KC) (“Kingsoft Cloud” or the “Company”), the largest independent cloud service provider in China, today.
Over the last few years, investors have been warned by shareholder advocates, a few short sellers, this column on MarketWatch, and most recently by the Securities Exchange Commission, about the huge risks they are taking by investing in Chinese initial public offerings in the U.S. markets. But based on the success of Kingsoft Cloud’s IPO Friday, investors are not listening.
(Bloomberg Opinion) -- Nasdaq is tightening rules on initial public offerings in an effort that looks to be targeted primarily at Chinese companies. To appreciate just how tepid its proposals are, consider this: They wouldn’t have screened out Luckin Coffee Inc., the most notorious accounting scandal involving a U.S.-listed Chinese issuer in years. On this evidence, IPO hopefuls have little to worry about — as long as they’re not too small.Companies will need to raise at least $25 million, or sell stock equal to a minimum 25% of their post-listing market capitalization, according to a Bloomberg News report that cited Nasdaq filings with the Securities and Exchange Commission. Luckin sold $645 million of shares in its IPO last May. There’s little comfort in this for the would-be Starbucks Corp. challenger: Nasdaq is seeking to delist Luckin after the company acknowledged fabricating sales transactions and fired its chief executive. Its shares, which will resume trading Wednesday, plummeted more than 75% in a single day last month. For other companies, though, the message is that the lure of IPO business still trumps U.S. government pressure to deter the flow of money into Chinese assets.The revised standards aren’t particularly punitive. Only three of 10 Nasdaq IPOs by Chinese issuers in 2020 raised less than $25 million. Last year, 10 of 29 flotations failed to meet the threshold, which is about the price of an upmarket New York townhouse. The requirement to sell at least a quarter of the business may be more painful. Half the companies selling shares this year floated less than 25%.Maybe we shouldn’t be surprised at the low bar. Chinese companies are big business after all, with a combined current market value of $380 billion on Nasdaq. The New York Stock Exchange, meanwhile, has almost $760 billion of Chinese listings — most of that accounted for by internet giant Alibaba Group Holding Ltd.There’s no sign that a rising U.S. climate of hostility to China is deterring IPO candidates. Beijing-based Kingsoft Cloud Holdings Ltd. raised $510 million this month after increasing the size of its float. Dada Nexus Ltd., an operator of crowd-sourced delivery platforms backed by Alibaba rival JD.com Inc., is currently sounding out investors for a $500 million offering. Such sales must come as welcome relief after a deals drought caused by the coronavirus lockdown.A bigger issue in rooting out fraud and malpractice is U.S. regulators’ access to company financial records and audit papers, something that China prevents. Current rules already allow Nasdaq to deny listings of companies from countries with such restrictions. Nasdaq is proposing more stringent criteria, including requiring auditors to show that they have sufficient expertise with international accounting standards in the offices doing the audit. This looks like a Band-Aid.The impression persists of an exchange that was under pressure to do something about Chinese companies — and came up with little more than the bare minimum. Just in case there was any doubt about the U.S. government’s stance, President Donald Trump’s economic adviser Larry Kudlow weighed in Tuesday to say that nobody can invest confidently in Chinese companies and the U.S. needs to protect investors from the country’s lack of transparency and accountability.Problems tend to be concentrated among the smallest and least liquid companies, so it makes sense to target them. Shares of Nasdaq-listed Chinese companies that raised less than $25 million since the start of 2017 are down an average of 60% from their IPO price — compared with a 34% average increase for all Chinese issuers selling shares during the period.(1)No one wants bit players in a world where investors have become increasingly skeptical of unprofitable technology companies. For the rest, America remains open for business — unless you’re Huawei Technologies Inc.\--With assistance from Zhen Hao Toh(1) The percentage figures are averages weighted by deal size.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Dada Nexus Ltd., an operator of crowd-sourced delivery platforms in China backed by JD.Com, has filed for what could be the second large U.S. initial public offering by a Chinese firm since an accounting scandal at Luckin Coffee Inc cast a shadow over such deals.The listing could raise about $500 million, people familiar with the matter said, making it one of the bigger U.S. IPOs by a Chinese company this year. Dada Nexus operates the JD-Daojia and Dada Now retail and delivery platforms which connect fleets of motorbike delivery staff with merchants in hundreds of Chinese towns and cities.The filing comes a week after Kingsoft Cloud Holdings Ltd. raised $510 million in the largest U.S. listing by a Chinese company this year. It was the first major trading debut since Luckin Coffee, once a poster child for Chinese startups, was accused of accounting fraud and saw its stock nosedive. U.S. listings could also become harder as the Trump administration moved on Monday to block investments in Chinese stocks by a government retirement savings fund.Read: Luckin Coffee Scandal Deals Blow to China Inc.’s ReputationIn the latest twist in the Luckin Coffee scandal, the coffee chain fired its CEO and another top executive on Wednesday, a sign of the increasing turmoil at the former success story that until a few months ago had been one of last year’s most high-profile and best performing Chinese IPOs in the U.S.Kingsoft Cloud shares have climbed 43% from the offer price, a rare mark of success for an asset class that has been marred by sinking share prices over the past year. The success showed the U.S. market is still receptive to Chinese companies even as the two countries clash on the origin of the coronavirus pandemic that has killed more than 291,000 people and infected over 4.2 million.This year 12 Chinese firms have listed in the U.S. and all but two are trading below their offer prices, data compiled by Bloomberg show. Of the 45 companies that have completed U.S. IPOs since the beginning of 2019, just eight are above water, the data show. They have declined 11.6% on average, weighted by deal size, whereas U.S. listings in general have risen by an average 19%.Details of Dada Nexus’ offering such as size could still change, the people said, asking not to be identified as the information is not public. A spokesman with Dada declined to comment.Goldman Sachs Group Inc, Bank of America Corp and Jefferies are leading Dada’s IPO, according to a filing with the U.S. Securities and Exchange Commission.(Adds Trump administration’s move in third para)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- ZoomInfo Technologies Inc., a business-intelligence platform owned by private equity firms, plans to go public as early as June in what could be one of the first technology listings since the start of the coronavirus pandemic, according to people with knowledge of the matter.The Vancouver, Washington-based company may launch a virtual roadshow to market its stock as soon as this month, said the people, who asked not to be identified because the information is private.ZoomInfo on Monday updated its filing for an initial public offering with its latest financial information. Following its February 2019 deal to combine with DiscoverOrg, the company’s revenue almost doubled to $102 million in the first quarter compared with the same period last year, according to the filing. Meanwhile, its net loss for the quarter shrunk to $5.9 million from $40 million in 2019.The company also said in the filing that in April, the annualized value of its contracts grew 87% compared with the same month last year.No decision is final and ZoomInfo’s IPO plans could still change. A representative for ZoomInfo declined to comment.The plans come after Kingsoft Cloud Holdings Ltd., the third-biggest cloud service provider in China by revenue, jumped 40% in its U.S. trading debut after raising $510 million last week. Kingsoft was the first major listing in the U.S. since mid-March, when the Covid-19 outbreak was declared a pandemic and trading volatility skyrocketed.A technology IPO would be a positive sign in an otherwise dreary market for offerings. Companies that were planning to go public this year, such as Airbnb Inc. and Procore Technologies Inc., have instead turned to private funding.ZoomInfo listed the size of its planned offering as $500 million in a filing in February, a placeholder figure that will likely change. Raising $500 million would make ZoomInfo’s IPO the second-biggest in the U.S. since the pandemic began, according to data compiled by Bloomberg.Zoom ConfusionIf the IPO is successful, ZoomInfo will have to make sure traders can tell it apart from several other companies with similar names, including Zoom Video Communications Inc., the video-conferencing system that’s become a work-from-home staple for many during the coronavirus crisis. That company’s shares are up 140% this year, valuing it at about $46 billion just over a year after its own IPO. Mobile hardware manufacturer Zoom Technologies Inc. changed its ticker to ZTNO from ZOOM to avoid confusion, after its stock rallied 890% in the first quarter and the U.S. Securities and Exchange Commission suspended its trading.ZoomInfo plans to use the symbol ZI for its shares, which will list on the Nasdaq Global Select Market.Previously known as Zoom Information Inc., ZoomInfo was last year combined with DiscoverOrg, another business-to-business data platform for sales and recruitment. DiscoverOrg’s backers include TA Associates and Carlyle Group Inc.JPMorgan Chase & Co. and Morgan Stanley are leading the share sale, a filing shows. Proceeds from the offering will be used to redeem preferred shares, repay debt and for general corporate purposes.(Updates with filing in third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
BEIJING, May 08, 2020 -- Kingsoft Cloud Holdings Limited (NASDAQ: KC) (“Kingsoft Cloud” or the “Company”), the largest independent cloud service provider in China, today.