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Abu Dhabi, BlackRock participate in Kwaisho’s IPO

The Abu Dhabi Investment Authority and BlackRock intend be major investors in the Chinese start-up Kwaisho's IPO.
Abu Dhabi Investment Authority and BlackRock intend be major investors in Kwaisho's IPO.

The Abu Dhabi Investment Authority, in partnership with BlackRock, intends to enter as major investors in the Chinese start-up Kwaisho’s Technology IPO.

The Capital Group and the Canadian Pension Plan Investment Board also intend to participate.

The short-video company offering is scheduled to start receiving subscription applications on Monday, aiming at rasing $6 billion.

Sources said Kwaisho seeks to allocate $2.5 billion for the benefit of ten major shareholders. Fidelity, China’s Boyo Capital and Morgan Stanley Asset Management have agreed to participate in purchasing shares.

The two Singaporean government investment companies GIC Pte and Temasek Holdings Pte are separately studying the possibility of participation.

The second-largest IPO

Kwaisho’s IPO, if successful, would be the would become the second-largest tech company IPO in the world after the Uber, which raised about $8.1 billion in May 2019.

The Chinese company, whose name means “fast hand”, is the main domestic competitor to TikTok owner ByteDance Ltd.

The Kwaisho is very popular among small towns and rural areas’ users.

Corn harvest and eating noodles are the dominant features of daily life in these poor areas.

More recently, Kwaisho expanded into urban areas and major cities. The company now offers video games and acting scenes against pop songs’ background.

Some changes

Cornerstone buyers typically agree to hold stock for a set period in exchange for early, guaranteed allocation. 

Kuaishou is still finalizing terms of the offering, and details could change, the people said.

Representatives for Kuaishou, ADIA, Capital Group, CPPIB, Morgan Stanley and Temasek declined to comment. 

Spokespeople for BlackRock, Fidelity and GIC couldn’t be reached or said they couldn’t immediately comment. 

A call to Boyu’s Hong Kong office wasn’t answered outside regular business hours.

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