Kingsoft Cloud (KC) IPO Opens 20% Higher

While the COVID-19 pandemic has largely stalled the market for initial public offerings, a Chinese cloud-computing company still managed to raise more than half a billion dollars in a U.S. IPO…

Kingsoft Cloud Holdings Ltd. KC, +29.00% priced its IPO of 30 million American Depositary Shares at $17 apiece, raising $510 million at a valuation of roughly $3.7 billion.

The company priced the shares at the midpoint of its suggested range of $16 to $18, and sold 5 million more shares than it was expecting earlier in the process.

Kingsoft sells cloud-computing services in China, where Alibaba Group Holding Ltd. BABA, +2.67% and Tencent Holdings Ltd. TCEHY, +3.16% compete in the sector. It is a spin-off from Chinese software giant Kingsoft Corp. Ltd. KSFTF, -1.08%, but calls itself an independently operated company at various times in its filings with the Securities and Exchange Commission.

The company’s revenue is growing, but so are its losses: While sales grew from 1.24 billion RMB ($174.5 million) to 2.22 billion RMB to 3.96 billion RMB from 2017 to 2019, losses increased from…

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