Quora-like Chinese Platform Zhihu Debuts In Hong Kong; Stocks Slumps 27%

The Chinese question and answer platform, similar to Quora, sold 26 million secondary shares in the deal.
Apr. 24, 2022 07:52
Quora-like Chinese Platform Zhihu Debuts In Hong Kong; Stocks Slumps 27%

Shares of Zhihu dropped as much as 27% on Friday as the Chinese firm debuted its primary dual listing in Hong Kong. 

The Chinese question and answer platform, similar to Quora, sold 26 million secondary shares in the deal. It raised $106 million by pricing its shares at HK$32.06 a piece. 

Zhihu shares debuted at HK$24.95 and closed 24% lower. According to the South China Morning Post, this is the third-worst debut among 13 in Hong Kong this year.

Zhihu was one of the biggest Chinese IPOs in New York in 2021 as it raised $523 million in late March 2021. No doubt, should the company have stalled, its debut wouldn't have been as grand: The vast majority of U.S.-China stocks, including some analyst favorites, have seen their market values shrink significantly over the past year as Beijing cracked the whip in a cross-industry clampdown. 

The New York-listed shares dropped nearly 6% on Friday and down 70% so far in 2022.