Quick IPO Conjecture: Going To Hong Kong Is A High Probability Event, And "Preemptive" Listing May Be The Sound Of PK

Shuo Yin's "old rival" quickly spread the news of an IPO in Hong Kong.

Recently, according to people familiar with the matter, the short video platform is seeking to be listed in Hong Kong as soon as possible within the year, and to seek a valuation of about US $50 billion. At the end of 2019, express has just completed the f round of financing, with a valuation of US $28.6 billion.

As soon as the news came out, it immediately attracted wide attention from the market.

On September 21, a reporter from the 21st century economic report asked for confirmation of the listing plan in Hong Kong, but the other side did not comment.

On the same day, a senior market investor in Shanghai revealed to reporters that Kuai has just launched pre IPO Financing, this round of financing is still in progress, and the listing may not be so fast.

Listing in Hong Kong is a high probability event

Fast hand's "ambition" for the capital market has a long history.

As early as September last year, it was rumored that Kuai Shou would go to the U.S. in 2020 to fund its expansion in short videos and enhance its ability to resist rivals such as tiktok.

One year later, the situation has changed.

Tiktok has been attacked in the United States. Although Oracle and Wal mart are basically certain that byte hop will reach a cooperation agreement with them in accordance with the laws and regulations of China and the United States to solve the problems concerning tiktok's future operation and development in the United States, it is undeniable that there are still factors of uncertainty.

In this context, the Hong Kong stock market will be listed as a place of listing, which is predicted as a high probability event by the industry.

"Under the current tense Sino US trade situation, more enterprises will be more cautious in going to the United States for listing. In May this year, the United States passed a new regulation of the foreign enterprise supervision act. Chinese companies listed on the US stock exchange must comply with the relevant audit rules of American listed companies, or they will be delisted, which makes Chinese companies listed in the United States face greater regulatory pressure. If we choose to list at home, the Hong Kong stock market is more mature and internationalized than A-shares. Nearly half of the investors come from overseas and pay more attention to long-term value investment. " On September 21, a partner of a private equity firm in South China told the reporter of the 21st century economic report.

Jiang Han, a senior researcher at Pangu think tank, told reporters of the 21st century economic report that "compared with the listing in the United States, the current capital market of Hong Kong is undoubtedly more friendly."

In April 2018, the "consultation summary on listing system of emerging and innovative industry companies" of the Hong Kong Stock Exchange officially took effect, liberating the restrictions on companies with the same share but different ownership structure. At that time, there had been news outflow of the "heart" of the fast hand to Hong Kong stocks, but then the express denied the relevant rumors.

On the other hand, since 2012, fasthand has almost maintained the rhythm of one round of financing every year. Listing as soon as possible is also more conducive to the circulation of equity. It can not only obtain more smooth financing channels for the company's development, but also provide convenient exit channels for shareholders.

In recent years, fast hand has been favored by investment funds at home and abroad. In 2012, fasthand received a multimillion dollar investment from Chenxing capital. Subsequently, the company has successively completed round B and round B + financing from Sequoia Capital China, US $250 million round C financing from Baidu, Chinese culture and light source venture capital, US $350 million round D financing, US $1.5 billion e-round financing, US $1.25 billion strategic financing and the latest round f financing at the end of 2019.

"On the one hand, listing can provide sufficient funds for the expansion of Internet e-commerce. On the other hand, we should further publicize the fast hand in front of the capital market, so as to help the fast hand obtain more financing channels. " Jiang Han added.

We need more innovative products and services

As one of the important short video leaders in China, the development speed of fast hand can be described as rapid. However, compared with buffeting, fasthand still needs to maintain the role of Catcher in the short term, and the listing may become a big opportunity for the fast hand to catch up with buffeting.

As early as the beginning of this year, the "2019 fast content report" released by the fast big data research institute showed that in 2019, 250 million people published their works on the express platform, and their daily life exceeded 300 million. According to the latest daily activity data of tremolo released at the tremolo creator's conference: as of August 2020, the number of active users of tremolo day has exceeded 600 million, double the number of fast hands.

In terms of financial data, according to the data of Dongfang Securities Research Institute, the revenue of express will reach 45-50 billion yuan in 2019, which is mainly composed of live broadcast reward, advertising and e-commerce, which is roughly equivalent to tremor.

In terms of advertising revenue, the revenue of e-commerce platform will increase by more than RMB 30 billion, accounting for RMB 30 billion of revenue in the year of 2019 The annual Gmv is about RMB 80 billion.

In 2020, fasthand has set a higher growth target in terms of advertising revenue and e-commerce: in 2020, it aims to achieve 40 billion yuan of advertising revenue, including 10 billion yuan of fast pick-up; the Gmv target of e-commerce is 200 billion yuan, and then increased to 250 billion yuan (the target of shaking tone is 200 billion yuan).

"Listing requires a certain amount of performance. In this period of time before listing, express needs to increase the growth rate, enhance the user's activity and increase the liquidity ability within a certain period of time." Zhang Xiaorong, President of the Institute of deep science and technology, told reporters that in his view, fast hand "should try to maintain a high growth rate.".

However, from the listing of this action, fast hand is expected to achieve a step ahead of the tremolo. On September 21, byte hopping confirmed that tiktok global will launch its IPO plan to further enhance the corporate governance structure and transparency. However, there is still no clear timetable for the IPO plan of byte hop itself.

"Tiktok's affair involves a lot of resources and energy of byte skipping. As far as the domestic tremolo is concerned, the impact is not so big. The shaking tone and the quick hand are closely watching each other, just like two end cockfighting. One side has a move, the other side will follow up immediately. But the listing of this action, the fast hand can obviously take a step ahead." Zhang Xiaorong said.

In the view of industry insiders, if fast hands can preempt the listing or get "new help" in the "war" with tremolo, it will have a positive impact on the company's future e-commerce live broadcast and copyright.

After the Internet dividend subsided, the user growth of many short video platforms is facing stagnation or slow, while the rapid growth and leading monthly life of twitter still maintain, which brings a lot of pressure on fast hand. At present, live e-commerce has become a new "arena" for the two leading players.

On September 16 this year, the express e-commerce announced that the order volume in August 2020 would exceed 500 million. In the past 12 months, after Taobao tmall, Jingdong and pinduoduo, fast e-commerce has ranked fourth in the e-commerce industry, and its daily e-commerce activity has exceeded 100 million. In the coming year, fasthand e-commerce said that it will invest 10 billion resources to create 10 billion yuan of revenue for ecological partners, and plan to incubate more than 100000 new businesses with annual sales of more than one million, so as to enable its platform e-commerce to continue to grow.

"The first thing to do is to have more capital to further improve its business ecology and realize the expansion of its business territory. Second, as a listed company, it is more famous and influential, which is more conducive to attracting talents and further development. Third, in the competition with tremolo, it is conducive to consolidate its leading edge in live e-commerce. For example, it has more advantages in the combination with other Internet companies and online celebrities. " Wu Daiqi, CEO of Shenzhen siqisheng Cultural Communication Co., Ltd., was interviewed.

It is worth noting that from a longer-term perspective, fasthand is also expected to accumulate strength for the "copyright war" that may be faced in the future through the capital market, and at the same time, it can realize diversified development with the help of the capital market.

Zhang Xiaorong pointed out: "short video has developed to a position close to the peak of the industry. Several players in the head cover the whole industry. However, short video is not the only means to entertain users. It is worth noting that there is also Chinese video. However, no matter what kind of video, there is a common problem copyright. Fast hand also needs to solve the copyright problem now. Listing financing can help them find funds to solve part of the copyright problem. "

In Zhang Xiaorong's opinion, the byte skipping volume is too large, and fast hand is a challenger. "It is not enough for fast hand to develop medium and short video. In order to keep ahead, fast hand should have innovative products and services, and diversified development can be considered.".

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