KingSoft Cloud gains 40% on first day of trading

The shares are being offered by Equinix only

KingSoft Corporation’s cloud subsidiary KingSoft Cloud defied expectations in its first day of trading on the NASDAQ last week.

KingSoft Cloud – which went public on Friday, May 8, as part of its spinoff from KingSoft Corporation – raised US$510 million on its first day after selling five million more shares than expected. It was seeking to raise $425 million.

A statement from KingSoft Cloud said the initial IPO price was fixed at US$17 per share, with 30 million American depository shares allocated. Xiaomi – an investor in previous funding rounds and holder of 10% equity interest – purchased 2,355,000 ADSs.

However, Xiaomi founder Jun LEI “has abstained from voting on the Board resolutions approving the Kingsoft Subscription and the Xiaomi Subscription”, according to a statement from KingSoft Corporation. The KingSoft Board is next due to meet on May 26 and an earnings call will be held at 19:00 hours Hong Kong local time.

The company, which is part of the $24bn KingSoft Corporation, today counts several data centres and branch offices around the world, including Beijing, Shanghai, Chengdu, Guangzhou, Hong Kong and North America.

In its Q3 results, KingSoft Corporation reported an overall 32% year-on-year increase in revenue (8% QoQ). In its cloud business, revenues were up 62% YoY and 6% on the previous quarter.

Founded in 2012, Data Economy reported that KingSoft Cloud was last year valued at US$2.37 billion and had raised $918.5 million.

Self-funded in several rounds, KingSoft’s investor list is extensive and includes Xiaomi, Yuri Milner, IDG Capital, China Asset Management Co., Ltd., China Merchants Securities, China Minsheng Investment Group, Liyue Investment, Beijing Liyue Jinshi Investment Center (LP), Forebright Capital Shunwei Capital and FutureX Capital.