Kling raising USD3bn at USD18bn valuation Quick Note

Research evidence excerpt

Kling raising USD3bn at USD18bn valuation Quick Note

Global Markets Research

Kuaishou Technology 1024.HK 1024 HK 3 July 2026

EQUITY: INTERNET & NEW MEDIA

RatingKling raising USD3bn at USD18bn valuation Remains Neutral

Target price HKD 51.00 RemainsQuick Note

Closing price HKD 42.64 2 July 2026What Happened?

On 2 July 2026, Kuaishou (KS) announced that its wholly owned subsidiary, Kling,

entered into a fundraising agreement with a group of investors (comprising 34

independent and 4 related parties) to raise up to USD3bn, subject to customary closing Research Analysts

conditions. These investors will hold a maximum combined stake of 16.67% post- China Internet & New Media

transaction. Jialong Shi - NIHK

Jialong.shi@nomura.comThe deal implies a USD15.0bn pre-money valuation and a USD18.0bn post-money

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valuation, which we believe is largely in line with market expectations of USD15-20bn.

Rachel Guo - NIHKSimultaneously, KS announced the allocation of up to 15% of the enlarged capital for

rachel.guo@nomura.comKling’s employee stock ownership plan (ESOP). After factoring in the potential dilution

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from both the external fundraising and the ESOP, KS’s equity stake in Kling will decrease

to 68.33% post-deal.

According to the filing, Tencent was among the participating investors, committing a total

of CNY1.4bn (~USD200mn) for a 1.12% stake.

The filing includes investor redemption rights: if Kling fails to complete an IPO before 30

October 2031, investors may require Kling to repurchase their equity at the original

investment price plus an 8% simple annual return.

Management stated that the USD3bn in proceeds will be deployed toward business

expansion, daily operations, working capital, team development, and other purposes