KE Holdings Inc., a Chinese online property platform backed by SoftBank Group Corp. and Tencent Holdings Ltd., rose 87 per cent in its U.S. trading debut after raising US$2.1 billion in an initial public offering.
The company, also known as Beike Zhaofang, closed Thursday at US$37.44 a share, giving the company a market value of about US$42 billion. KE sold 106 million American depositary shares on Wednesday for US$20, exceeding its target range of US$17 to US$19 apiece.
The offering is the largest by a Chinese company in the U.S. since iQiyi Inc. raised US$2.4 billion in March 2018, according to data compiled by Bloomberg.
Tensions between the U.S. and China have intensified in recent days after President Donald Trump moved to ban the Chinese-owned social media apps WeChat and TikTok from operating in the U.S.
Despite the worsening geopolitical friction, U.S.-listed Chinese stocks have held up. The S&P/BNY Mellon China ADR Index, which tracks U.S.-listed Chinese companies, is up 18 per cent this year, outpacing the S&P 500 Index’s 4.4 per cent gain from the same period.
KE, the Chinese equivalent of Zillow Group Inc., marks a success for SoftBank, which invested US$1.3 billion at a US$10 billion valuation. The company was last valued at about US$14 billion in 2019, according to CB Insights data.
Goldman Sachs Group Inc., Morgan Stanley, China Renaissance and JPMorgan Chase & Co. led KE’s offering. The shares are trading on the New York Stock Exchange under the symbol BEKE.