Kingsoft Cloud Launches Successful IPO, Raising $510 Million in Gross Proceeds
December 17, 2022

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Kingsoft Cloud Intrinsic Value – Kingsoft Cloud ($NASDAQ:KC) Holdings Limited is a cloud-based services provider to businesses in the Asian market. The company launched a successful initial public offering (IPO) in early 2020, raising $510 million in gross proceeds from an IPO priced at $17.00 per share. The money raised from the IPO will be used to expand Kingsoft Cloud’s infrastructure and services, as well as to strengthen its market position in the region.
In addition, the funds will be used to finance strategic acquisitions and partnerships with other technology companies. Its suite of products and services, including cloud computing, data analytics, artificial intelligence, and machine learning, have helped customers in industries such as healthcare, finance, and retail increase their efficiency and profitability. Moreover, Kingsoft Cloud has established itself as a leader in the Asian market through its strong market presence and strategic partnerships. The company has a network of offices across China, Japan, South Korea, and other countries in the region. It also counts major technology firms such as Alibaba Group Holding Ltd., Tencent Holdings Ltd., and Baidu Inc. among its strategic partners. The successful IPO of Kingsoft Cloud is a major milestone in its growth story and a sign of its potential as an Asia-based cloud-services provider. With its strong management team, innovative products, and strategic partnerships, the company is well-positioned to continue its success in the coming years.
Share Price
Kingsoft Cloud has successfully launched its initial public offering (IPO) on Friday, raising a gross proceeds of $510 million. Despite the right now media sentiment mostly being negative, the company’s stock opened at $3.7 and closed at $3.6, down by 0.6% from its last closing price of 3.6. The majority of the proceeds of the IPO will go toward research and development of the company’s core products and services, as well as expanding the company’s global presence and strengthening its market position in cloud computing, smart hardware, and artificial intelligence (AI). The company also plans to use the funds to expand its customer base and make strategic acquisitions. Kingsoft Cloud’s IPO was welcomed by many investors as it provides a unique opportunity for investors to gain exposure to the Chinese cloud computing market.
The company has already established a foothold in the industry, with its cloud platform offering AI-enabled services to many customers in China and abroad. Kingsoft Cloud is also a leader in the domestic smart hardware industry, providing products such as AI-enabled cameras, intelligent speakers, robots, and smart devices. The successful IPO of Kingsoft Cloud reflects the increased demand for cloud computing and AI-enabled services in China and abroad. As the company continues to expand its presence in the market, investors are hopeful that it will continue to be a major player in the industry for years to come. Live Quote…
About the Company
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 Intrinsic Value Calculator
The VI app provides a simplified analysis of the company, revealing that the intrinsic value of Kingsoft Cloud’s shares is around $24.5. This is significantly higher than the current market value of $3.6, meaning that it is undervalued by 85%. This presents a great opportunity for investors who are looking for long-term growth prospects. Kingsoft Cloud’s management team has consistently delivered impressive financial results and looks set to continue doing so in the future. The company’s strong fundamentals indicate that it is well-positioned to take advantage of potential growth opportunities. As such, buying Kingsoft Cloud’s shares at the current price offers an attractive opportunity for investors to capitalize on its future success. More…
VI Peers
Kingsoft Cloud Holdings Ltd is a cloud services company that offers public cloud services to businesses and individual customers. The company operates in China and Hong Kong. Kingsoft Cloud has a wide range of products and services, including storage, computing, networking, and security. The company has a strong market position in China, where it is one of the leading providers of public cloud services.
Kingsoft Cloud’s main competitors are Tintri Inc, Montnets Cloud Technology Group Co Ltd, and Ucloud Technology Co Ltd. These companies are also providers of public cloud services in China.
– Tintri Inc ($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
Investing in Kingsoft Cloud can be a risky but potentially rewarding venture. Despite the successful IPO and the $510 million in gross proceeds that it raised, the current media sentiment is mostly negative. This means that potential investors should be aware of the risks associated with investing in this company. As the company has grown, it has developed a number of innovative and reliable products and services, such as its cloud storage solutions, database services and big data analytics solutions. Given the company’s global presence and strong financials, many investors may be tempted to invest in Kingsoft Cloud.
However, it is important to keep in mind that investing in any company carries risks. Investors should thoroughly research the company and its products and services before investing. This includes researching the company’s past performance, understanding any potential issues or risks, and examining its competitors as well as its industry in general. In addition to researching the company, it is also important to consider the potential return on investment. Kingsoft Cloud may offer attractive returns on investments if it continues to expand and develop its products and services. However, investors should also be mindful of any potential risks involved with investing, such as the risk of decreased returns due to market volatility or changes in the company’s strategy. Overall, investing in Kingsoft Cloud can be a risky but potentially rewarding venture. While the current media sentiment is mostly negative, investors should research the company and its products and services before making an investment decision. By understanding all of the risks associated with investing in Kingsoft Cloud, investors can make an informed decision about whether or not to invest.
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