Feb 18, 2021 02:16 PM

Cloud Specialist Cloopen Floats Up in New York IPO

What’s new: Shares of cloud products and services provider Cloopen Group Holding Ltd. are trading at nearly twice their IPO price a week after the company’s New York trading debut just before the Lunar New Year holiday.

Cloopen’s American depositary shares (ADSs) closed on Wednesday at $29.37, versus an IPO price of $16 last week. The shares tripled on their first trading day Feb. 9 to close at $48, but have eased in the five trading days since then to their current level.

The company raised $320 million in the offering, making it one of the largest IPOs in the U.S. so far this year by a Chinese company.

Background: A growing number of Chinese tech companies that would have previously chosen New York are listing instead in Hong Kong, amid an increasingly hostile environment towards such firms on Wall Street dating back to the administration of former U.S. President Donald Trump.

Despite that, a steady stream of firms is still choosing to list in New York and are receiving generally positive receptions.

In a much smaller offering, Baosheng Media Group Holdings Ltd. raised $30 million in an IPO earlier this month, and saw its shares jump 77% on their first trading day. Like Cloopen, Baosheng’s shares have given back some of the gains since then, but are still up 50% from their IPO price.

Quick Takes are condensed versions of China-related stories for fast news you can use.

Contact reporter Yang Ge (geyang@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)

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