On Monday, the 4th of May 2020, Kingsoft Cloud Holdings Ltd., the Chinese provider of cloud computing services such as video streaming, gaming and fintech, said in a statement that the eight-year old cloud service provider had been expecting to sell up to $450 million worth of stocks in a US IPO (Initial Public Offering) as early as by next Thursday (May 7th) which in effect would value the Chinese company at $3.6 billion, remarking the first major Initial Public Offering since the pandemic outbreak excluding biotech and special purpose acquisition companies (SPAC).
Usually, biotech firms alongside SPACs have been immune to attrition damages due to the broad-based market swings. Aside from that, according to Kingsoft’s Monday’s (May 4th) statement, the cloud computing services provider would be seeking to sell 25 million ADS (American Depository Shares) shares tagged between $16 and $18 per ADS, while the company had also added its stocks would start trading on Nasdaq by next Friday (May 8th) under the symbol “KC”.
Meanwhile, as multiple media report stated that three of the existing stakeholders such as Kingsoft Group, Xiaomi Corp. alongside Carmignac Gestion were planning to purchase up to $25 million, $50 million and $50 million worth of Kingsoft stocks respectively, referring to a resolute appetite of Chinese companies to go through the US public listings, the Asia Practice Chair of law firm Ortoli Rosenstadt LLP., Jason Ye said on Monday (May 4th), “There is no doubt that the Luckin debacle has put a cloud over the Chinese IPOs in the pipeline, but the interest for Chinese companies to list here in the U.S. remains strong. ”