Kanzhun Sets Terms for Friday IPO Worth Nearly $1 Billion

Despite everything, the U.S. investor is still keen on Chinese companies.
CapitalWatch StaffJun 07,2021,21:35

Kanzhun Ltd., China’s top HR platform, is scheduled to debut on the Nasdaq Global Select Market this Friday in an initial public offering worth $912 million.

The company is offering 48 million American depositary shares at $17 to $19 apiece. Each ADS represents two ordinary shares.

Kanzhun said in its updated prospectus that cornerstone investors have signed up to acquire an aggregate of 20.8 million of ADSs in the IPO. The investors are UBS Asset Management, GIC Private, affiliates of Mubadala Investment, Sequoia Capital China, and Tiger Global Investments.

Citing China Insights Consultancy, the operator of Boss Zhipin said it was the top online recruitment platform in China in 2020 in terms of average monthly active user numbers – which grew by 73% last year to 19.8 million. This number further rose to 24.9 million in the three months ended March 31, 2021. Further, in the 12 months through March 2021, the company counted 2.89 million paid enterprise customers and 13 million verified enterprise users, according to the filing.

In 2020, Kanzhun nearly doubled its revenue year-over-year to $298 million, while losses widened to $144.4 million. In the first quarter of 2021, revenues surged 179% to $120.4 million, while losses were $26.9 million. Operating cash flow turned positive in 2020, reaching $60.7 million.

Goldman Sachs (Asia) LLC, Morgan Stanley & Co. LLC, UBS Securities LLC, China Renaissance Securities (Hong Kong) Ltd., Haitong International Securities Co. Ltd., Futu Inc., and Tiger Brokers (NZ) Ltd. are securing the initial public offering.

Kanzhun expects to float its shares under the ticker symbol “BZ.” The company first publicly filed two weeks ago with the U.S. Securities and Exchange Commission and anticipates to become publicly traded on June 11. The deal will be one of the largest IPOs by a Chinese firm in New York this year, proving yet again that U.S. investors' appetite for Chinese companies is as strong as Chinese companies' appeitite for access to U.S. capital.

Indeed, the Chinese IPOs continue in Ameirca despite the looming threat of big delistings and rising tensions between the two nations.

To wit, another Chinese company is set to debut in the markets this week: Zhangmen Education Inc., a provider of on one-on-one and small-class after-school tutoring services for K-12, is expected to lift off on the New York Stock Exchange on Tuesday in a downsized IPO worth up to $46.8 million. The expected stock symbol for Zhangmen is “ZME.”

Topics:Kanzhun, Boss Zhipin, BZ, Tencent, China, IPO