Kuaishou to Issue 100 Shares to Each Eligible Employee After Spring Festival

(Source: VCG)

Recently-listed short video company Kuaishou has confirmed on Feb. 8 that it will issue 100 shares to each eligible employee after the lunar Chinese New Year festival, according to Jiemian News.

Employees who have received the notice also revealed that the shares will belong to them as soon as issued but will need to endure a lock-up period of six months.

Kuaishou made a stunning debut on the Hong Kong market on Feb. 5 with a $5.4 billion initial public offering. Its shares closed at HK$300 and the intra-day high reached as much as HK$345, more than double compared to its IPO price of HK$115.

The incredible rise of Kuaishou in the capital market has neared its price to that of ByteDance, the parent company of Douyin — Kuaishou’s biggest competitor in China.

Since its listing, Kuaishou’s stock price has remained around HK$300. Based on this calculation, 100 shares will correspond to about HK$30,300, which is equivalent to approximately 25,212 yuan.

Investment banking company UBS Group estimated that Kuaishou will profit next year with the price targeting HK$430 per share, Hong Kong Economic Times reported.

SEE ALSO: Short Video App Kuaishou Seeks up to $5.4B in Hong Kong IPO

Another tech giant, Tencent Holdings, is also issuing 100 shares as a year-end bonus to each of its employees who have made “special attributions” to the company during the past year, with the restricted period being one year. If calculated based on the current stock price of Tencent, the 100 shares will be worth about HK$74,000 (about 61,000 yuan).

Kuaishou Technology’s stock price opened at HK$309 and has reached HK$344 as of 11:59 a.m. Hong Kong Time, rising 13.53% compared to the previous close of HK$303.