Shares in Beijing Kingsoft Office Software skyrocketed in its trading debut on Shanghai’s Nasdaq-style high-tech STAR board as investors enthusiastically embraced the China rival to U.S. software giant Microsoft.
Kingsoft Office raised 4.5 billion yuan ($640 million) on its trading debut on Monday by offering 101 million shares, or 21.91% of the company at 45.86 yuan ($6.53) apiece. After shares rose dramatically that day, their price fell 2.24% to 129.18 yuan on early trading on the second day of Tuesday, but were still trading around 180% higher than their initial public offering (IPO) price.
The Zhuhai-based company is best known for WPS Office software, a free alternative to Microsoft’s software suites such as Word and Excel, which can be used by numerous major operating systems including Microsoft Windows, Apple’s macOS and Google’s Android. In the first nine months this year, the company posted profits of 200 million yuan ($28.46 million), down 2.51% from the same period last year.
Kingsoft Office is a subsidiary of Beijing-headquartered Kingsoft, a Hong Kong-listed company which is controlled by Lei Jun, the founder of Chinese smartphone giant Xiaomi. Kingsoft specializes in video games, mobile apps, cloud storage, and office software. Kingsoft Office contributed 19.2% of the group’s total revenue in 2018.
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This article previously misstated Kingsoft Office's profit for the first nine months of this year.
Contact reporter Tang Ziyi (email@example.com)Caixinintern@caixin.comRelated: Kingsoft Office Targets $660 Million as It Moves Toward Listing on New Shanghai Tech Board