Chinese cloud services provider Kingsoft Cloud Holdings Ltd. has filed for an IPO in the U.S. in the hope of raising as much as $100 million.
The money raised will mainly be used to upgrade and expand its infrastructure and increase investment in technology and product development, the company said in a prospectus filed to the U.S. Securities and Exchange Commission on Friday.
Kingsoft Cloud was founded in 2012 and its largest shareholder is Hong Kong-listed Kingsoft Corp. Ltd, of which Chinese entrepreneur and Xiaomi-founder Lei Jun is the chairman. In 2019, the cloud company posted a net loss of 960 million yuan ($136 million) on revenues of 3.96 billion yuan.
In China, the cloud market is increasingly dominated by several big tech companies, including Alibaba, Tencent and Huawei. In the second half of 2017, Kingsoft Cloud had a market share of 6.5% in the “infrastructure-as-a-service” (IaaS) sector, ranking third only after Alibaba and Tencent, according to data from industry consultancy IDC. However, by 2019, its IaaS market share ranking in China had been pushed back to sixth, as it was surpassed by China Telecom, Amazon and Huawei.
Read the full story on Caixin Global later.
Contact reporter Mo Yelin (firstname.lastname@example.org)
Related: Cloud Services Provider Comes Down From Strong Start in First Mainland Dual-Class Listing