ByteDance is considering listing Douyin in New York or Hong Kong: Sources | Technical news

From Yingzhi Yang and Julie Zhu

BEIJING / HONG KONG (Reuters) – ByteDance is in talks over a possible offshore listing of its short video app Douyin, the Chinese version of TikTok, in New York or Hong Kong.

The investigation into the public offering of Douyin in New York by the TikTok owner has recently become known, according to the population. ByteDance had previously considered a standalone IPO for Douyin in Hong Kong, Reuters reported in October.

The company had also considered listing some of its Chinese companies, including news aggregator Toutiao, in Hong Kong or on the STAR market in Shanghai.

Beijing-based ByteDance was one of the candidates who for years wooed Chinese regulators for a potential public debut in the NASdaq-style STAR market.

However, the prospect of a STAR Market IPO for ByteDance has worsened following the collapse of the fintech Ant Group’s $ 37 billion initial public offering, according to two sources. Chinese securities regulators are less likely to give the green light to another high-profile listing in the near future, respondents said.

The China Securities Regulatory Commission and ByteDance did not respond to Reuters’ requests for comment.

Those who indicated that no listing decisions had been made declined to be named for reasons of confidentiality.

ByteDance hired former Xiaomi manager Shou Zi Chew for a newly created role as CFO last week, which is seen as a sign that an IPO is approaching.

The company’s valuation in private trading has risen rapidly along with market expectations of an IPO.

A year earlier, ByteDance granted employees $ 100 billion in shares. Two weeks ago, the valuation rose to $ 270 billion. Last week, the number rose to $ 300 billion, according to ByteDance employees.

ByteDance originally wanted to list its entire business in a blockbuster IPO in New York or Hong Kong before Washington highlighted concerns about TikTok’s handling of user data.

(Reporting by Yingzhi Yang in Beijing and Julie Zhu in Hong Kong; additional reporting by Cheng Leng in Beijing; editing by Elaine Hardcastle)

Copyright 2021 Thomson Reuters.

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