After a series of issues minimized the intentions of ByteDance, the company that owns TikTok, to go public, now everything indicates that these plans could be carried out faster than is thought.
And it is that this company that has grown in weight and visibility in the market thanks to its short videos app, it seems that now it wants to take the next big step in its business history.
As indicated from Financial timesAlthough there is great pressure from regulators in Hong Kong on listed technology companies, the owner of TikTok is preparing to debut on the Stock Exchange of that market.
The intentions of the Chinese firm were already evident for a few months; however, the company apparently had decided in the first instance to address the data security concerns of Chinese regulators, said one of the sources consulted by the aforementioned newspaper.
“We expect a final guide from ByteDance in September. They are making all the submissions to the Chinese authorities at this time and are going through the review process, “he added.
At this point, it is important to mention that the plans of the owner of TikTok to list abroad, most likely in the United States, were halted this year, after Beijing made intensive offensives against the main Chinese technology groups for apparent violations of the rules on security and data processing, including stricter supervision of those listed abroad.
The truth is that its IPO, after these concerns have yet to be resolved, could take place in Hong Kong early next year.
Towards the end of last year, the owner of TikTok was estimated to be close to reaching a valuation of $ 180 billion according to anonymous sources at private equity firms Sequoia Capital and KKK, who led the latest round of financing for the company. company in 2020.
This figure is more than 20 billion dollars more than what was calculated just three years ago, according to data provided by CB Insights.
Although the figures are high, it is more interesting to recognize that for private equity investors, the value of the doubt of TikTok is close to reaching 40 billion dollars, as reported since it is close to 400 billion dollars , according to a report by the South China Morning Post.
The operations carried out outside the market are what have made the value of this company grow, which generates special expectations for its next IPO.
Thus, we cannot forget that ByteDance, famous for its short video applications such as TikTok and news aggregator Toutiao doubled its revenue last year after expanding beyond its core advertising business in areas such as e-commerce and online games.
Added to this is the health that TikTok now has, which seems to be stepping stronger and stronger in the business of social media and, therefore, of online advertising.