After Kingsoft Cloud‘s stock price dropped on Monday, the cloud service provider in China announced that it will explore a dual listing of its ordinary shares on the Main Board of the Hong Kong Stock Exchange. The move is intended to provide shareholders with greater protection amid evolving market conditions and regulatory environments.
The specific listing plan will depend on the approval of regulatory authorities and market conditions. Meanwhile, Kingsoft Cloud will keep focused on driving sustainable development as a U.S. listed company to maximize shareholder value. Despite recent fluctuations in its stock price, the company’s business operations remain normal and uninterrupted.
Kingsoft Cloud is an offshore holding company established in Cayman Islands in January 2012. It has built a complete cloud computing infrastructure and operation system by combining advanced technologies such as the Internet of Things, blockchain, edge computing, big data, AR and VR. The company officially provided cloud storage services for Chinese smartphone giant Xiaomi in 2013.
On May 8, 2020, Kingsoft Cloud was listed on the Nasdaq in the US with ticker symbol “KC” and the issue price set at $17. It became the only Chinese pure cloud service provider in the U.S. stock market at that time and saw its share price rise by more than 40% on the first day of listing.
The company’s share price hit a high of $74.67 per share in February 2021 but has since dropped like a rock, losing more than 95% of its value. As of press time, Kingsoft Cloud‘s share price was $2.56 per share, down 47.86%, with a total market value of $618.7 million.
In terms of financial data, in the third quarter of 2021, Kingsoft Cloud‘s total revenue was 2.414 billion yuan ($379 million), a year-on-year increase of 39.6%, while its net loss expanded to 507 million yuan, compared with 105 million yuan in the same period of 2020.