(Yicai Global) March 19 -- Shares of Tuya Smart jumped over 19 percent during the Internet of Things platform's first trading day on the New York Stock Exchange in one of the largest listings among Chinese firms in the US this year.

The cloud computing company's stock price [NYSE: TUYA] rose by 19.1 percent to USD25 yesterday. Its market cap reached USD14 billion.

Tuya raised USD915 million in its initial public offering, the second-largest sum among Chinese companies that went public in the US this year. Only electronic cigarette brand Relx Technology garnered more.

Former employees of e-commerce giant Alibaba Group Holding established Tuya in 2014. The startup, which counts Schneider Electric and Philips as some of its clients, helps hardware manufacturers add smart features to their products including temperature and lighting control.The company entered North America in 2015 and after that expanded to Europe, Australia, and China.

Tencent Holdings is Hangzhou-based Tuya's second-biggest shareholder with its 10.8 percent stake, according to the firm's prospectus filed on Feb. 27. On March 15, the startup secured USD500 million in financing from investors, including Tencent Investment and Hillhouse Capital Group.

The firm's performance has been improving. Tuya's revenue jumped by 70 percent to USD180 million in 2020 from a year ago. Its net loss wasabout USD66.9 million.The IoT platform was supporting 200 million devices as of last December.

But the business model has its risks. Tuya warned its investors in its prospectus about uncertainties when working with third-party suppliers as it may lead to increased costs and quality problems. Moreover, the International nature of its business can bring regulatory and economic risks.

Editor: Emmi Laine