ByteDance Hong Kong Public Offering Evaluates TikTok Creator’s Capitalization at $ 300 Billion
Under the previous US president, the TikTok app was harassed for accessing American users’ personal data, so ByteDance developers chose the Hong Kong platform for the public offering, according to informed sources. The company will be valued at $ 300 billion, making it the third-largest issuer.
As the Nikkei Asian Review explains concerning Caixin, entering the American stock market would be too risky for the creators of ByteDance in the current environment, so the Chinese company is ready to consider an IPO in Hong Kong. Last fall, rumors surfaced of a separate IPO for the Chinese equivalent of TikTok, known as Douyin, but now such plans are frozen, and ByteDance wants to go public on the Hong Kong Stock Exchange “as one squad.”
In August last year, almost half of the global information network users in China turned to Douyin every day. The number of active TikTok users in Europe and the United States exceeded 200 million people a month. ByteDance also managed to become the owner of the largest advertising platforms in China regarding turnover, so its estimated capitalization of $ 300 billion will make it the third-largest company on the Hong Kong platform. Tencent ($ 765 billion) will remain the leader, followed by Alibaba ($ 662 billion), and Meituan, with its $ 218 billion, will be pushed into fourth place. At the moment, 40% of ByteDance’s capital belongs to four American investors. Last month, Shou Zi Chew became the CFO of ByteDance, preparing for the IPO of Xiaomi in 2018, so some sources believe that.
