Kingsoft Cloud priced its Nasdaq IPO on May 8, 2020, in an upsized offering contemporaneously reported at about $510 million. The company later said it sold 34.5 million American depositary shares (ADSs) at $17 each, including the full overallotment, and received approximately $551.3 million in net proceeds. Those figures describe different measures of the offering, not competing estimates of the same amount.
What Kingsoft Cloud’s IPO raised
Data Center Knowledge, carrying Bloomberg reporting on May 8, 2020, described the upsized IPO as raising $510 million. That was the headline-era reported deal size. In its June 3, 2020 first-quarter results announcement, Kingsoft Cloud reported the completed sale and net proceeds after underwriting discounts and commissions.
| Measure | Reported terms | Source and date |
|---|---|---|
| Contemporaneous reported deal size | About $510 million | Data Center Knowledge/Bloomberg, May 8, 2020 |
| Completed ADS sale | 34.5 million ADSs at $17 each, including the full 4.5 million ADS overallotment | Kingsoft Cloud, June 3, 2020 |
| Net proceeds | Approximately $551.3 million after underwriting discounts and commissions | Kingsoft Cloud, June 3, 2020 |
The company’s later net-proceeds figure is not interchangeable with a reported deal-size figure: it explicitly reflects proceeds after underwriting discounts and commissions and includes the fully exercised overallotment. The two reports therefore describe the offering at different stages and on different bases.
How the offering grew and closed
May 5: a larger fundraising target
Caixin Global reported that Kingsoft Cloud had raised its fundraising target from an original $100 million target. It also said existing shareholders Kingsoft and Xiaomi indicated interest in buying up to $25 million and $50 million, respectively, at the IPO price. These were indications of interest, not evidence by themselves of completed allocations. The company’s Form F-1/A filed May 4, 2020 contains the registration statement’s offer terms, business description, risks and shareholder information.
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May 8: pricing and Nasdaq trading
Kingsoft Corporation announced that Kingsoft Cloud had priced its ADS offering and commenced trading on Nasdaq on May 8. The issuer announcement records the pricing and start of trading.
June 3: final sale details
In its first-quarter 2020 results release, Kingsoft Cloud reported that the underwriters had fully exercised their 4.5 million ADS overallotment option, bringing the completed sale to 34.5 million ADSs at $17 each. The company put net proceeds at approximately $551.3 million after underwriting discounts and commissions.
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Why Luckin Coffee appeared in the IPO coverage
The “amid Luckin” framing referred to the climate for Chinese companies seeking U.S. listings after Luckin Coffee’s accounting scandal became public. Data Center Knowledge’s May 8 report called Kingsoft Cloud the first Chinese company to list in the United States since the scandal became a major market concern. The juxtaposition describes timing and investor-confidence context; the cited materials do not establish that Kingsoft Cloud was involved in Luckin’s conduct or had a business relationship with Luckin.
The SEC’s December 16, 2020 complaint concerning Luckin Coffee provides regulatory background on the company’s internal-investigation disclosure and alleged fabricated transactions. The complaint sets out allegations; it should not be treated as proof that a separate issuer shared the alleged conduct.
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What was known about Kingsoft Cloud at the time
Kingsoft Cloud was a cloud-services provider. The 2020 Data Center Knowledge/Bloomberg report characterized it as China’s third-largest cloud-services provider by revenue, citing a 5.4% revenue market share from a company filing. That is a historical estimate reported at the time of the IPO, not a current ranking or market-share figure.
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