The company ByteDance, which owns the social network TikTok, plans to enter the stock exchange despite the tightening of China’s policy towards technology companies, the Financial Times writes, citing its sources.
ByteDance intends to conduct an initial public offering (IPO) on the Hong Kong Stock Exchange at the end of this or early next year. Recently, the company has been working with Chinese regulatory authorities on this issue to avoid possible reprisals. As part of the last round of financing in December 2020, ByteDance was estimated at $ 180 billion.
The Chinese company planned to enter the stock exchange earlier but decided to postpone it indefinitely, fearing increased pressure from Beijing against IT companies. The head of ByteDance, Zhang Yiming, was cautious, unlike his colleagues from the “Chinese Uber” company Didi. On June 30, the taxi aggregator raised $ 4.4 billion at an IPO in New York, which caused the anger of the authorities. The cyberspace administration of China accused Didi of violating the law on collecting customer data and removed 26 applications from virtual stores, including the main one, collapsing the company’s shares. Now they are trading at $ 9.79 a piece, although they originally cost $ 14.