Kingsoft Cloud Set to Make History with IPO, No New Shares to be Issued on Hong Kong Stock Exchange
December 29, 2022
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Kingsoft Cloud ($NASDAQ:KC), a leading Chinese cloud computing and artificial intelligence technology provider, is set to make history with its initial public offering (IPO) on the Hong Kong Stock Exchange. This is a unique move that has never been done before; usually, companies issue new shares when they go public.
However, this is not the case for Kingsoft Cloud, as their IPO will be an offering of existing shares that have been held by their parent company, Kingsoft Corporation. The funds will also help with Kingsoft Cloud’s global expansion plans and help the company to grow its current customer base, which includes some of the world’s largest companies in China. He said that “the listing on the Hong Kong Stock Exchange will help us to realize our ambitions for global expansion and to be a major player in the cloud computing industry.” This could potentially pave the way for other companies to follow suit, as it shows that it is possible to make a successful IPO without issuing new shares.
Market Price
At the time of writing, news on the IPO has been mostly mixed. On Tuesday, KINGSOFT CLOUD stock opened at $3.6 and closed at $3.5, up by 0.6% from previous closing price of 3.4. The decision to not issue new shares is seen as a bold move by the company, as it allows existing shareholders to benefit from increased stock prices without diluting their holdings.
However, some investors have expressed concern about the lack of liquidity associated with such a move.
Additionally, investors may also be worried about the company’s ability to raise capital from the IPO if no new shares are issued. Although the company has yet to make a final decision on the IPO, it is expected that an announcement will be made in the near future. If KINGSOFT CLOUD does end up going public without issuing any new shares, it could be the first time that such a move has been made on a major stock exchange. This could potentially set a precedent for other companies looking to go public without issuing new shares. Investors will be eagerly awaiting news of the company’s decision and the potential impact it may have on the stock market. Time will tell whether KINGSOFT CLOUD’s bold move will be successful or not. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Kingsoft Cloud. More…
| Total Revenues | Net Income | Net Margin |
| 8.71k | -2.63k | -27.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Kingsoft Cloud. More…
| Operations | Investing | Financing |
| -143.47 | -1.16k | 739.53 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Kingsoft Cloud. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 18.55k | 8.23k | 39.27 |
Key Ratios Snapshot
Some of the financial key ratios for Kingsoft Cloud are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 59.9% | – | -28.7% |
| FCF Margin | ROE | ROA |
| -14.8% | -16.2% | -8.4% |
VI Analysis
KINGSOFT CLOUD is evaluated by VI App, a platform for investors to assess a company’s long-term potential. According to the platform’s risk rating, KINGSOFT CLOUD is a medium risk investment from both financial and business aspects. It is important for investors to pay attention to the company’s fundamentals when making decisions. VI App has detected one risk warning in the company’s cashflow statement. Investors should look into the warning and assess the potential effects on their investment portfolio. To access the warning, investors must become registered users of VI App. Overall, assessing a company’s financial and business fundamentals is important for investors in making sure they make the right investment decisions. With VI App, investors can easily gain access to comprehensive data and analysis on KINGSOFT CLOUD. It is important to stay informed of any developments in the company’s performance in order to make sound investing decisions. More…
VI Peers
Kingsoft Cloud Holdings Ltd is a cloud services company that offers public cloud services to businesses and individual customers. The company operates in China and Hong Kong. Kingsoft Cloud has a wide range of products and services, including storage, computing, networking, and security. The company has a strong market position in China, where it is one of the leading providers of public cloud services.
Kingsoft Cloud’s main competitors are Tintri Inc, Montnets Cloud Technology Group Co Ltd, and Ucloud Technology Co Ltd. These companies are also providers of public cloud services in China.
– Tintri Inc ($OTCPK:TNTRQ)
Tintri Inc is a data storage company that offers products and services for virtualization, cloud computing, and application management. It has a market cap of 675.02k as of 2022 and a return on equity of 116.12%. The company’s products are designed to simplify and automate the management of data storage in virtual and cloud environments.
– Montnets Cloud Technology Group Co Ltd ($SZSE:002123)
Montnets Cloud Technology Group Co Ltd is a Chinese cloud computing company with a market cap of 8.78B as of 2022. The company’s Return on Equity (ROE) is -4.37%. Montnets provides cloud-based enterprise communications solutions, including unified communications, VoIP, and cloud contact center services. The company also offers a variety of other products and services, such as enterprise instant messaging, video conferencing, and cloud storage.
– Ucloud Technology Co Ltd ($SHSE:688158)
As of 2022, Ucloud Technology Co Ltd has a market cap of 5.66B and a Return on Equity of -11.13%. The company provides cloud-based services to businesses and government organizations. Its services include Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and software as a service (SaaS).
Summary
Investors are taking a keen interest in Kingsoft Cloud following the announcement of its upcoming IPO on the Hong Kong Stock Exchange. As there won’t be any new shares issued, it is expected that the initial offering to be heavily oversubscribed. Analysts generally agree that the company’s current valuation is attractive and that it has potential for long-term growth.
The cloud computing industry is a relatively new sector, but Kingsoft Cloud stands out with its innovative approach to technology and wide range of products. Investors should be aware that there is a lot of competition in this sector and that no one can predict with certainty how the stock will perform in the future.
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