Kingsoft Cloud filed an IPO prospectus update with the US Securities and Exchange Commission (SEC) showing that the company will issue 25 million American depositary shares (ADS), each equivalent to 15 ordinary shares at the nominal value of $0.001 per ADS. The company filed its original prospectus on April 17 seeking an IPO on NASDAQ under the symbol “KC.”
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The underwriters of the IPO that include JPMorgan Chase, UBS, Credit Suisse and CICC will be able to purchase up to 3.75 million ADS within 30 days from the date of the announcement. Kingsoft Cloud expects the IPO price will reach between $16 and $18 per ADS.
Kingsoft Cloud stated in the updated document: “Our existing shareholders Kingsoft Group and Xiaomi have expressed interest in purchasing up to $25 million and $50 million in Kingsoft Cloud ADS at the IPO price.” However, the company emphasized that it was not a binding purchase agreement or commitment, and that Kingsoft Cloud is currently under no obligation to sell any ADS to Kingsoft Group or Xiaomi.
The company has stated that about 50% of the IPO proceeds will be used for infrastructure expansion investments while around 25% will be allocated for research and development, especially in the fields of artificial intelligence, big data, cloud and internet of things technology.