News Alert: Filing of application for Hong Kong dual primary listing
- Kingsoft Cloud announced its filing application for dual primary listing in Hong Kong
- The proposed listing is subject to regulatory approvals
- Positive to share price due to (1) the possible inclusion into Stock Connect and (2) easing of investors’ concern on potential delisting from the US market
- We currently rate BUY with TP of US$10.9
What’s New
– Kingsoft Cloud (KC US) announced its filing of an application for dual primary listing in Hong Kong before US market open on 27 Jun 2022.
– KC will be dual-listed on the Nasdaq and the Hong Kong Stock Exchange upon the completion of the proposed listing.
– KC previously announced its plan to explore dual listing in the Hong Kong market on 15 Mar 2022.
– The proposed listing is subject to regulatory approvals, including comprehensive vetting procedures with the Hong Kong Stock Exchange, and other conditions.
Our View:
– The announcement confirmed its plan for dual primary listing dual listing, which is positive to share price on the possible inclusion into Stock Connect. Meanwhile, the filing of the application would further ease investors’ concern on potential delisting from the US market under the Holding Foreign Companies Accountable Act.
– Currently, only primary listing stocks are eligible to be included in Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect. The inclusion in the Stock Connect could diversity its investor base via southbound trading.
– We currently rate BUY on the counter with TP of US$10.9.