The Kuaishou headquarters is pictured in Beijing, China on November 5, 2020.

VCG | Visual China Group | Getty Images

GUANGZHOU, China – Shares in Chinese short video company Kuaishou rose nearly 200% on its debut in Hong Kong when it opened.

The tech firm raised Hong Kong dollars 41.28 billion ($ 5.32 billion) from its initial public offering (IPO) after valuation of its shares at Hong Kong dollars 115 each at the top of its expected range.

Kuaishou shares opened at $ 338 Hong Kong.

The company’s main business is a short make money video app that users buy who buy virtual gifts to give to their favorite streamers. Kuaishou is also pushing into new areas like e-commerce.

Kuaishou said its IPO was oversubscribed with high demand. If the so-called allotment option is exercised, which allows the investment bank to issue more shares, Kuaishou could raise over $ 6 billion.

Ten cornerstone investors, led by Capital Group, with interests in BlackRock and Fidelity, invested in the IPO.

Kuaishou’s listing will be an appetite test for Chinese tech companies, while Beijing is stepping up its scrutiny of the sector in areas from antimonopoly to privacy. In November, the Chinese government introduced rules on live streaming purchases that could affect Kuaishou.

The IPO is also another win for the Hong Kong Stock Exchange, which has managed to attract high profile tech companies and secondary listings. US-listed Chinese companies like Alibaba and have also raised money in Hong Kong. CNBC reported that the Nasdaq-listed Chinese video company Bilibili has also applied for a secondary listing in Hong Kong.

Kuaishou faces stiff competition in China from rivals such as Douyin, ByteDance’s Chinese version of TikTok, and Tencent’s WeChat messaging app.