Tuya Joins Slew of Dual-listed Chinese Firms With Hong Kong Offering

A year ago, Tuya celebrated one of the biggest U.S.-China IPOs of 2021. Now, it's fighting against the current and stabilizing its public status with a listing closer to home.
Jun. 22, 2022 14:13
Tuya Joins Slew of Dual-listed Chinese Firms With Hong Kong Offering

(CapitalWatch, June 22, New York) Tencent-backed Saas platform Tuya Inc. (NYSE: TUYA) has announced the launch of its global offering ahead of its dual-primary Hong Kong listing on Wednesday.

Tuya is selling 7.3 million of its ordinary shares at up to HK$22.80 per ordinary share, or $2.90 per ADS, according to company statement. That represents an upside of 18% from Tuesday's close of $2.46 per share in New York – but it was not enough to battle the uncertainty in the markets. Despite the good news, TUYA stock dipped about 1% in early trading Wednesday, to $2.43 per share.

The final price will be set on June 27, with New York-listed stock level to be taken into consideration. Shares of Tuya will be publicly traded on the main board of the Stock Exchange of Hong Kong under stock code "2391." They will be fully fungible with the American depositary shares listed on the NYSE.

CICC Hong Kong Securities Ltd., Merrill Lynch (Asia Pacific) Ltd., and Morgan Stanley Asia Ltd. are the joint sponsors for the proposed global offering. CMB International Capital Ltd. and Tiger Brokers (HK) Global Ltd. are the bookrunners and lead managers on the deal.

Last year, Tuya celebrated one of the largest U.S.-China IPOs in New York as it raised $915 million in its initial public offering. Having lifted off in mid-March, Tuya had escaped Beijing's crackdown on overseas listings that shelved Chinese IPOs in New York starting in July 2021. Since, just a handful of Chinese firms have made it to Wall Street – and all were either small-caps or micro-caps.

As investor interest in New York turned sour, many U.S.-listed China firms have turned to the dual-listing structure. This will also secure the firms' public status against the threat of potential delistings as may occur under the Holding Foreign Companies Accountable Act. 

Last month, real estate marketplace KE Holdings (NYSE: BEKE; HKEX: 2423) lifted off in Hong Kong. It's gained about 45% in trading since. In April, it was Quora-like platform Zhihu (NYSE: ZH; HKEX: 2390), up 19% since then. In March, EV maker Nio (NYSE: NIO; HKEX: 9866) joined XPeng (NYSE: XPEV; HKEX: 9868) and Li Auto Inc. (Nasdaq: LI; HKEX; 2015) in dual listing status, then went ahead to Singapore to pursue a triple listing.