KE Holdings (BEKE), China's largest housing platform operating under the Lianjia and Beike brands, raised $2.1 billion in the largest US IPO from a Chinese issuer since 2018 and posted the best first-day pop for a billion-dollar IPO since 2000.
Even as the US government ramps up its rhetoric of delisting Chinese companies from US exchanges, KE Holdings came to market hot, pricing above the range, opening 75% above its offer price, and finishing with an 87% gain. KE Holdings' strong market position, recent growth, and improving EBITDA margins prompted investors to value the company like its higher multiple high-growth peers. While the Hong Kong Exchange and the new Shanghai Tech board have captured a greater share of listings from Chinese growth companies, KE Holdings' successful debut reaffirms the advantages of listing in the US, the world's deepest capital markets, particularly for large and fast-growing Chinese issuers.
KE Holdings also serves as an important bellwether for...
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