Kingsoft Cloud, Latest Chinese Firm to Seek Dual Main Listing in Hong Kong

People walk past a screen displaying the Hang Seng stock index outside the Hong Kong stock exchanges, in Hong Kong, China July 19, 2022. REUTERS/Lam Yik

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HONG KONG, July 28 (Reuters) – Cloud computing firm Kingsoft Cloud (KC.O) has filed documents for a dual primary listing in Hong Kong, becoming the latest Chinese company to seek a diversified listing in the central Asian financial.

The New York-listed company filed its initial prospectus with the Hong Kong Stock Exchange on Wednesday evening to advance the listing, which it had signaled in March that it was exploring.

E-commerce firm Alibaba Group (9988.HK) said on Tuesday it was looking to convert its secondary listing in Hong Kong to a dual primary listing that would allow it to apply for Stock Connect, the program that makes it easier for Chinese investors continentals. to buy Hong Kong stocks.

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Secondary listed stocks are not included in the Stock Connect program.

Kingsoft Cloud, in a statement, did not identify a timeline or how much it might seek to increase in the Hong Kong listing.

The company has not decided on the size of the deal, which would depend on its share price as it nears the launch of the transaction, said a source with direct knowledge of the matter.

The source could not be identified as the information has not yet been made public.

Kingsoft Cloud did not immediately respond to a request for comment. The company, which listed in New York in May 2020, has been through a volatile period, with its shares falling 77% year-to-date amid China’s regulatory crackdown on the country’s tech sector.

Its shares were sold in the IPO at $17 each and the stock closed Wednesday at $3.47, giving it a market capitalization of $845 million.

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Reporting by Scott Murdoch in Hong Kong; Editing by Muralikumar Anantharaman

Our standards: The Thomson Reuters Trust Principles.

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