Though COVID-19 continues to impact global stock markets, China’s Kingsoft Cloud Holdings Ltd said on Monday it aims to sell up to $450 million in stock in a U.S. initial public offering (IPO). This would make Kingsoft the first major U.S. IPO since the coronavirus outbreak, with the exception of biotechnology firms and special purpose acquisition companies.
Melanie Chen, managing director (UHY New York region), noted an important milestone about risk disclosures in speaking with Reuters about the company’s IPO plans.
Melanie reflected on the requirement from the SEC and PCAOB that Chinese companies must prominently disclose as a risk factor if their auditors are not inspected by the PCAOB. PCAOB oversees the audits of public companies in the United States.
“Kingsoft has become the first Chinese company to disclose such risks following the statement,” said Melanie Chen, head of China Group at UHY LLP, a New-York based accounting firm.
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