Bytedance, the world’s most valuable and owner of the hyper-popular short video app, has resurrected its plan to go public in Hong Kong despite the fact that the regulatory laws of the Government in China are becoming stricter.
After postponing its listing abroad this year, Bytedance has spent the last few months addressing security concerns from Chinese regulators. The group, which raised around $5 billion in December, reaching a valuation of $180 billion, plans to go public during the fourth quarter of this year or early 2022according to .
The most valuable startup in the world could go public at the end of 2021
«We expect the final brochure from Bytedance in September. All relevant documentation is currently being submitted to the Chinese authorities and is going through the review process.”reported the outlet citing people close to the company.
While a Bytedance spokesperson called the Financial Times information inaccurate, he also did not deny the fact that the world’s most valuable startup is going public soon, nor did he elaborate.
was founded in 2012 and has services such as the news aggregator Toutiao What do you currently have? more than 120 million users a day. His success with began with his short video app Douying which was launched in 2016, quickly managing to outperform its rivals, so much so that in 2017 managed to acquire Musical.ly.
Since then, its number of users has only grown, so much so that since 2019 it has taken the throne as the most valuable startup in the world.
As we said, Bytedance’s current valuation exceeds 180,000 million dollars, one more example that its leadership is absolute if we take into account that in 2020 its valuation was around 75,000 million dollars. Namely, It has doubled in value in just over a year.
The many problems of Bytedance’s path to its initial public offering
The Chinese giant assured last April that it had no upcoming plans for its initial public offering (IPO), and in fact its recent plan to go public could change due to the complications generated by the Chinese regulatory environment.
To give a recent example, , rival of Tiktok, they plummeted nearly 12% last Friday as state media instituted stricter regulation of Internet video.
Bytedance, in addition to having to face the in May, also had to deal with different security concerns, and not only in China, but also in the United States, where it was about to formalize the sale of TikTok in this market as a way to deal with problems with user data security. Nevertheless, After Trump left the US government, the operation was cancelled.
This is one of the reasons why the company had postponed, at least for now, its stock market debut outside of China.. In any case, Bytedance must undergo a data security review before going public abroad, since according to Chinese government decrees, it will be a necessary action for any technology with more than one million users. This measure is intended to control that foreign regulators do not obtain confidential information from Chinese users.
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