Image Source: Visual China

BEIJING, July 28 (TMTPost) – Chinese cloud computing service provider Kingsoft Cloud has filed for dual primary listing in Hong Kong.

China International Capital Corporation, JPMorgan Chase and UBS serve as the co-sponsors of the listing. 

After the assessment process is completed, Kingsoft Cloud will be listed on both the Stock Exchange of Hong Kong and Nasdaq in the United States.

The company’s prospectus shows that Kingsoft Cloud is an industry leader in the Chinese cloud service market. The company is dedicated to providing quality cloud solutions for enterprises and organizations from different industries and offering strategic, comprehensive and reliable cloud services to its clients. Statistics from Frost & Sullivan show that Kingsoft Cloud is the biggest independent cloud service provider in China in 2021 in terms of income.

The company’s share price on Nasdaq rose by 2.66% to US$3.47 per share on Wednesday, setting Kingsoft Cloud’s market valuation at US$845 million.

Different from traditional IT, cloud service can provide enterprises and organizations with several advantages, including lowering cost, agility, extension opportunity, reliability and technological innovation. This is why the IT industry has been transferring its operation to the cloud. As an emerging IT model, the global cloud service market has maintained strong growth since 2014 and is expected to continue to enjoy strong growth.

Statistics from business consulting firm Frost & Sullivan show that the cloud service market in the United States is projected to grow by a compound rate of 20.6% between 2021 and 2026. China has been the second biggest cloud service market globally since 2018 in terms of revenues, only second to the United States.

The market scale of the cloud service industry in China has grown from the US$12.7 billion in 2017 to US$45.4 billion in 2021 with a compound annual growth rate of 37.5%. The scale of Chinese cloud service market is expected to reach US$145.8 billion in 2026.