[Asia Economy Reporter Park Byung-hee] The initial public offering (IPO) of ByteDance, the operator of the short video sharing app 'TikTok,' may be delayed until after the end of next year, according to multiple sources cited by the Hong Kong South China Morning Post (SCMP). As Chinese authorities tighten regulations on big tech companies, uncertainty surrounding ByteDance's IPO is increasing.
One source stated that it is unlikely ByteDance will receive approval from Chinese authorities for listing before the 20th National Congress of the Communist Party of China, scheduled for next fall. Another source said that with the Chinese government strengthening new data regulations, the chances of ByteDance quickly obtaining approval for its IPO are slim. Yet another source reported that Chinese authorities advised ByteDance "not to rush" the IPO.
SCMP reported, "It remains unclear how Chinese authorities will proceed with the review of ByteDance's IPO in the future, and whether the regulations will also apply to listings on the Hong Kong stock exchange."
Earlier, ByteDance stated in April that it had no plans for an IPO. Although recent news reports suggested that ByteDance was aiming for a Hong Kong listing in the fourth quarter of this year or early next year, ByteDance denied these reports.
Chinese authorities are cracking down strongly on overseas listings of Chinese companies that pose data leakage risks. In July, the Cyberspace Administration of China (CAC) released a revised version of the Internet Security Review Measures, which mandates that domestic internet companies with over one million members must undergo a pre-review to ensure there are no national security risks before listing on overseas stock exchanges such as those in the United States.
Ride-sharing company Didi Chuxing was investigated by authorities just three days after its listing on the New York Stock Exchange on June 30.
When ByteDance raised $5 billion (approximately 5.7 trillion KRW) in December last year, it was valued at $180 billion. According to ByteDance's internal announcement in June regarding last year's performance, revenue was $34.3 billion, and gross profit was $19 billion.
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