Kuaishou draws BlackRock, Abu Dhabi to $6bn IPO

Chinese short-video start-up plans to set aside almost $2.5bn of IPO stock for about 10 cornerstone investors, sources said

Kuaishou Technology, the Chinese short-video start-up, has attracted BlackRock Inc. and the Abu Dhabi Investment Authority as cornerstone investors in its Hong Kong initial public offering, people with knowledge of the matter said.

Capital Group Cos. and Canada Pension Plan Investment Board also committed to buy stock in the offering, the people said, asking not to be identified because the information is private. Kuaishou is targeting to raise as much as $6 billion from the share sale, which is set to start taking orders as soon as Monday, the people said.

The company plans to set aside almost $2.5bn of IPO stock for about 10 cornerstone investors, the people said. Fidelity, Chinese buyout firm Boyu Capital, Morgan Stanley Investment Management, and Invesco Ltd.’s Oppenheimer fund arm also agreed to purchase shares, they said. Singapore state investment firms GIC Pte and Temasek Holdings Pte separately plan to participate in the offering, according to the people.

Kuaishou is attempting the world’s biggest internet IPO since Uber Technologies Inc.’s $8.1bn share sale in May 2019, according to data compiled by Bloomberg. The Chinese company, whose name means “fast hand”, is the main domestic rival to TikTok owner ByteDance Ltd.

The app established its popularity among users in smaller cities and the countryside, with people streaming slices of everyday life from harvesting corn to slurping noodles. Kuaishou has since expanded to audiences in bigger metropolitan areas, hosting content ranging from people playing video games to teenagers lip-syncing pop songs.

Kuaishou is attempting the world’s biggest internet IPO since Uber Technologies Inc.’s $8.1bn share sale in May 2019

Cornerstone buyers typically agree to hold stock for a set period of time in exchange for early, guaranteed allocation. Kuaishou is still finalising terms of the offering, and details could change, the people said.

Representatives for Kuaishou, ADIA, Capital Group, CPPIB, Morgan Stanley, Invesco and Temasek declined to comment. Spokespeople for BlackRock, Fidelity and GIC couldn’t be reached or said they couldn’t immediately comment. A call to Boyu’s Hong Kong office wasn’t answered outside regular business hours.