TOKYO / PALO ALTO, USA – Chinese viral video platform Kuaishou Technology is the most valuable company to list last year, with a market capitalization of around $ 110 billion, despite a 30% decline since its IPO, according to Nikkei Research.
That makes Kuaishou more valuable than Airbnb, which leads newly listed U.S. and European companies with roughly $ 92 billion. The data warehousing provider Snowflake, the online gaming platform Roblox and the food delivery service DoorDash also follow their TikTok rivals.
Nikkei’s analysis covers IPOs from June 2020 to May 2021, including so-called SPAC listings by special purpose vehicles. The rankings are based on the market capitalization as of June 11th.
Kuaishou has 295.3 million daily active users and is expanding during the height of the coronavirus pandemic. The company was valued at $ 158 billion during its February Hong Kong listing.
The short video platform faces tough competition at home. Unlisted rival ByteDance, whose IPO prospects have been closely watched, has 600 million daily active users on Douyin, the Chinese version of TikTok. Kuaishou reported a net loss of 57.7 billion yuan ($ 9 billion) for the first quarter, worse than the 30.4 billion yuan in red ink a year earlier.
Newly listed Chinese companies dominate the market cap ranking for Asia, with leading South Korean e-commerce company Coupang being the only exception in the top 10.
With a market capitalization of around $ 66 billion, the New York Stock Exchange-listed Coupang is chasing far more established South Korean names like Samsung Electronics and SK Hynix. Coupang draws its strength from delivering orders within 24 hours from its network of over 170 distribution centers across the country.
However, Coupang faces its own profitability challenge. The company’s net loss in the first quarter has worsened year over year. On June 11, Coupang’s market value had fallen 21% from its March debut.
The pandemic has created space for online service providers to expand. Chinese online real estate agent KE Holdings is offering virtual reality tours of homes to potential buyers. Around 49,000 real estate companies use KE’s tools. Since its listing in New York in August, KE’s market value rose more than 35% on June 11 to $ 56 billion, placing the company fifth in the Asian ranking.
The Chinese electric vehicle startup Xiaopeng Motors, or Xpeng for short, listed in New York ranks ninth with $ 31 billion. The company plans to launch a flying car between 2023 and 2025.
People like Kuaishou and Coupang are dwarfing Japan’s new IPO crowd. The most valuable Japanese company listed last year, the personnel service provider Visional, comes in at only around 2.2 billion US dollars.