April 30, 2021

Bytedance Stock IPO Plan (TikTok)

Bytedance Stock IPO Plan (TikTok)

Click here to get a PDF of this post

ByteDance raised its stock-option offer to employees as talk of a Hong Kong IPO continues. Sources say the valuation of the private Chinese company that owns TikTok has surged higher over the past year. [1]

The Beijing based start-up company ByteDance is currently the world’s biggest unicorn by market capitalization.

ByteDance has plans to launch a TikTok Global initial public offering in the United States eventually, but no specific date for the IPO has been set. The current planned rounds of fundraising would leave ByteDance with an 80% ownership of TikTok Global stock before it goes IPO. TikTok Global would be the U.S. company created to own and operate TikTok’s business operations in North America, Australia, and a few others. ByteDance would own the remaining TikTok operation, including China. 

ByteDance has begun the process for a Hong Kong stock exchange IPO. Investors are excited about a potential 2021 IPO which could be valued at approximately a low of $75 billion to as high as $200 billion.

According to sources ByteDance doubled its private valuation in a new employee stock option plan. Strong performance by TikTok increased bullishness for future IPO valuations. ByteDance offered employees the chance to exchange their bonuses for ByteDance’s privately traded stock at $126 USD per share, last year’s offer of a little below $50 USD. The price was $44 in 2019, according to Chinese media.

The specific valuation of the Chinese tech company has grown in interest as the plan of an initial public offering continues.