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IPO Frenzy

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  1. #1

    IPO Frenzy

    This seems a little bit overdone to me:

    HK$1.28 trillion is being tied up in the retail tranche of a single IPO of a company that apparently made an operating loss of RMB8.9 billion for the first 9 months of 2020.

    To put that in context, 5 times more is being punted on Kuaishou-W's IPO than the total turnover on HKEX today (around HK$240 billion).

    <IPO News>KUAISHOU-W (01024.HK) Posts $1.28T Record Subscription in Retail Offering: Wire AASTOCKS Financial News - Top News

    <Feature>KUAISHOU-W (01024.HK)'s Key Operating, Financial Data (Table)

    shri likes this.

  2. #2

    Join Date
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    A fool and his money is soon parted?

    mrgoodkat likes this.

  3. #3

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    So this is apparently a poor man's TikTok (for people living in lower tier Chinese cities). How do they plan to monetise this group?


  4. #4

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    Quote Originally Posted by traineeinvestor:
    This seems a little bit overdone to me:

    HK$1.28 trillion is being tied up in the retail tranche of a single IPO of a company that apparently made an operating loss of RMB8.9 billion for the first 9 months of 2020.

    To put that in context, 5 times more is being punted on Kuaishou-W's IPO than the total turnover on HKEX today (around HK$240 billion).

    <IPO News>KUAISHOU-W (01024.HK) Posts $1.28T Record Subscription in Retail Offering: Wire AASTOCKS Financial News - Top News

    <Feature>KUAISHOU-W (01024.HK)'s Key Operating, Financial Data (Table)
    Something doesn't quite add up here for sure. What is the missing picture?
    Last edited by Coolboy; 29-01-2021 at 05:25 PM.

  5. #5

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    Quote Originally Posted by aw451:
    So this is apparently a poor man's TikTok (for people living in lower tier Chinese cities). How do they plan to monetise this group?
    Its all about eyeballs man ... E Y E B A L L S!

  6. #6

  7. #7

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    Quote Originally Posted by shri:
    Its all about eyeballs man ... E Y E B A L L S!
    I'll be disappointed if I buy the stock and don't get any actual eyeballs
    traineeinvestor and aw451 like this.

  8. #8

    And all this is happening when large parts of the world economy are being adversely affected by the economic side effects of covid-19.

    For those who are interested, Charles Mackay's Memoirs of Extraordinary Popular Delusions and the Madness of Crowds is available free on Project Gutenberg:

    https://www.gutenberg.org/ebooks/24518

    shri and huja like this.

  9. #9
    Quote Originally Posted by Cheeky Kiwi:
    A fool and his money is soon parted?
    Well, that would include this fool.

    I stuck in an unleveraged application. If I get nothing I get my money back. If I get a single board lot I might be able to have a bottle of prosecco over dinner next weekend.
    mrgoodkat, Sage, LifeInHK and 2 others like this.

  10. #10

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    The Hong Kong exchange is a peculiar place. IPOs are almost always artificially hot and almost always disappoints after its initial 1/2 day pop.

    Then you have a huge segment of small caps, which like David Webb says, trade like lemons. Some of these companies are actually pretty decent quality businesses paying out good dividends. But they see very little love and keep trading at low multiples for years and years.

    For me I love it and I hate it, I love to find these hidden gems, but I hate when they get stuck at low valuations after I bought them

    aw451 and Coolboy like this.

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