Shares in the Chinese video app Kuaishou almost tripled on the first day of trading in Hong Kong, giving TikTok’s chief rival a market value of $180bn.
The debut of the short-form video site on Hong Kong’s stock exchange on Friday has been one of the most eagerly anticipated initial public offerings this year and raised $5.4bn (£4bn).
The company’s stock jumped 194% in early trading on Friday at HK$338 from the initial public offering price of HK$115.
Kuaishou, which made a $1.1bn loss last year, competes in China with ByteDance, the owner of TikTok and its Chinese sister app, Douyin. The company said it has about 300 million daily active users, who spend an average of 86 minutes or more on the app.
It makes money from activity including taking a small cut of the “tips” users leave for the creators that make content they particularly like, which come in the form of virtual gifts such as small digital “stickers” of objects, which account for about 62% of total revenues.
It also makes money from livestreaming e-commerce, sometimes fronted by celebrities.
Kuaishou’s revenues grew from $1.3bn in 2017 to $6.2bn in the nine months ended 30 September 2020 but it still reported a loss of $1.1bn.