Futu News, February 4, this Thursday.$Kuaishou Technology-W (01024.HK) $According to the announcement, the company issued 356 million shares at HK $115,100 per share and is expected to list on February 5.

Kuaishou Technology Technology was 1201.16 times subscribed during the public offering phase, and the final number of offer shares allocated to the public offering was 21.9132 million shares, accounting for 6 per cent of the total number of offer shares (before any over-allotment option was exercised). A total of nearly 1.423 million valid applications were received, with a success rate of 4%.

This time, more than one million people participated in Kuaishou Technology, surpassing the previous subscription records of Yidu Technology (1.17 million), Industrial and Commercial Bank of China (954000) and Bank of China Ltd. (969000) to become the most subscribed Hong Kong stock IPO in history.

It is worth mentioning that during the public offering phase, Kuaishou Technology's final subscription at Futu reached 206673, with a subscription amount of more than HK $42.6 billion.It ranked second in terms of subscriptions and subscribers, second only to Ant Group IPO.

In addition, the international offering was about 39 times oversubscribed, resulting in a final number of 343.3 million shares, equivalent to 94 per cent of the total number of shares offered. Futu Information collates the relevant data as follows:

In terms of fund-raising purposes, the company's net proceeds of about HK $4.1276 billion will be used for the following purposes: about 35 per cent will be used to strengthen the company's ecosystem; about 30 per cent will be used to strengthen the company's R & D and technological capabilities; about 25 per cent will be used to selectively acquire or invest in products, services and businesses; and about 10 per cent will be used for working capital and general corporate purposes.

It is reported that Kuaishou Technology Technology was founded in 2011 and has developed into a pioneer in the short video industry and a leading global content community and social platform. At present, the company has established a diversified business structure, covering entertainment, online marketing services, e-commerce, online games, online knowledge sharing and other sectors. According to the prospectus, Tencent holds 21.57% of the shares, making him the largest institutional shareholder of the company.

Kuaishou Technology launched the e-commerce business in 2018. Based on the highly active community and user stickiness, it has become the fourth largest e-commerce platform in China, with cumulative orders second only to Taobao Tmall, JD.com and Pinduoduo.

According to iResearch, as of September 30, 2020, Kuaishou Technology was the largest live streaming platform in the world for virtual gifts, and the second largest short video platform in terms of the average number of daily active users. And the second largest live streaming e-commerce platform in terms of total merchandise transactions.

In terms of financial data, Kuaishou Technology's revenue has shown rapid growth in recent years, from 8.3 billion yuan in 2017 to 39.1 billion in 2019, with a compound annual growth rate of 117%. In the first nine months of 2020, revenue recorded nearly 40.7 billion yuan, an increase of 49% over the same period last year. This is mainly due to the substantial growth of online marketing services and the large-scale expansion of e-commerce, online games and other businesses.

The company's adjusted net profit increased from 770 million yuan in 2017 to 1.03 billion yuan in 2019, with a compound annual growth rate of 15.6%. Due to investment in promotion, talent introduction and R & D base, the company recorded an adjusted net loss of 7.24 billion yuan in the first nine months of 2020.

In terms of industry, the average daily online time of China Mobile Limited Internet users increased from 2.90 hours in 2015 to 4.35 hours in 2019 and is expected to reach 5.73 hours by 2025. About 29.7% of the average daily online time was spent on video-based social networking and entertainment platforms in 2019, and the proportion is expected to reach 36.3% by 2025.

Short video and live streaming are two prominent forms of video that are becoming more and more popular on social platforms. According to iResearch, the average daily use time of China Mobile Limited Internet users in short videos and live streaming platforms has increased from 1.7% in 2015 to 15.6% in 2019. The proportion is expected to reach 25.1% in 2025.

Kuaishou Technology is one of the two large video social platforms in the world that focus on short videos and live content. In the nine months ended September 30, 2020, the company was the second largest short video platform in the world in terms of average daily active users.

As for cornerstone investors, a number of cornerstone investors agreed to subscribe for the number of offering shares available for subscription at the offering price, totaling about US $2.45 billion, including Capital Group,TemasekIts Aranda Investments,GIC(GIC),Jingshun investment(Invesco),Fidelity International、Blackrock (BlackRoc)k)、Canadian Pension Plan Investment Authority(CPP Investments), Sunny Festive,Morgan StanleyMSAL and MSIM Inc, as well as the largest sovereign wealth fund in the United Arab EmiratesAbu Dhabi Investment Authority(ADIA).