Shares of KE Holdings Inc., a Chinese online property platform, initially soared 77% in a blockbuster public debut Thursday that raised more than $2 billion despite the imminent threat of a hostile U.S. government…
The public debut of KE Holdings BEKE, 75.10% , also known as Beike Zhaofang and backed by SoftBank Group Corp. 9984, +3.73% and Tencent Holdings Ltd. 700, -2.01% , underscored vigorous demand for the offering — the largest float by a Chinese company in the U.S. since iQiyi Inc. IQ, -2.05% raised $2.4 billion in March 2018.
“These are very good results and affirmation of our company’s culture of transparency and collaboration,” company Chief Financial Officer Tao Xu told MarketWatch in a phone interview early Thursday. KE Holdings reported a net profit of $227.5 million in the first half of 2020 on revenue of $1.77 billion.
The company combines a traditional real-estate brokerage that has existed for nearly 20 years with a real-estate services business that mostly exists online. In American terms, it is similar to a combination of RE/MAX Holdings Inc. RMAX, -2.52% and Zillow Inc. Z, -2.58% The company’s revenue grew more than 60% in 2019 to $6.5 billion, KE reported in filings with the Securities and Exchange Commission, while losses more than quadrupled to $308.6 million.
The Beijing-based company priced its initial public offering early Thursday at $20 per American Depositary Share, above its proposed price range of $17 to $19. It sold 106 million ADS to raise $2.12 billion. Goldman Sachs led nine underwriters on the deal.
KE Holdings’ IPO comes fraught with peril, starting with the White House. President Donald Trump and Treasury Secretary Steven Mnuchin have said the administration is considering delisting Chinese companies trading on U.S. public markets, among other penalties.
Continue reading at MARKETWATCH.com