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TikTok: a potential IPO

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Miguel A. Rodriguez
Miguel A. Rodriguez
18 September 2020
The Chinese app could go public within a year on the US markets

The infamous Chinese app, TikTok, seems to disregard the possible partnership with Oracle as is considering an IPO.

Its parent company, #ByteDance is considering taking #TikTok public through a brand-new corporate entity if the White House approves the deal. According to people familiar with the matter, the new company will be named TikTok Global. Also, following Reuters' information, the IPO could take place a few years from now on a US stock exchange.

Oracle, the possible partner of TikTok, is said to have a stake in the new entity. It stated that it is part of a consortium to acquire the Chinese app, but as new rules are enforced in China, it will be difficult for the company to receive TikTok's algorithms.

The partnership between the two is still under scrutiny at the White House, given the fact that President Trump suggested that he won't accept a deal that will allow ByteDance to have the majority stake in TikTok if the deal goes through. 

If the IPO is happening, it could be among the largest in the tech sector, considering the fact that its investors recently valued the app at over $50 billion. 

Following the news, Oracle closed the trading session 0.41% lower, but it managed to wash off the losses during today's pre-market session by gaining more than 1%.  

Read more about the possible partnership between Oracle and TikTok, and what China has to say about it here!

Sources: thestreet.com, economictimes.indiantimes.com, finance.yahoo.com


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.