Kanzhun Ltd. (Nasdaq: BZ) lifted off with fanfare Friday, trading at $36.27 per American depositary share in the afternoon – nearly double its issue price.
The operator of China's top HR platform Boss Zhipin priced its offering at $19 per share, the top of the expected range, and sold 48 million ADSs. That makes its IPO worth $912 million; an additional 7.2 million shares may be acquired for over-allotments.
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 deal.
Kanzhun said in its prospectus that certain 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. Kanzhun is backed by Chinese tech conglomerate Tencent Holdings (OTC: TCEHY; HKEX: 0700).
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.
The highly successful debut shows U.S. investors' continued interest for Chinese stock despite the continued tensions under President Joe Biden and the passage of the Holding Foreign Companies Accountable Act this year, which may threaten some of U.S.-listed Chinese stocks in the long term.