(Yicai Global) July 13 -- Chinese live streaming platform Inke has made its debut on the Hong Kong Stock Exchange just three years after the company was formed.

Inke [HK:3700] surged 40 percent in its first full session yesterday to close at HKD4.26 (USD0.54), up 10.6 percent from an issue price of HKD3.85, which valued the Hangzhou-based firm at HKD7.75 billion (USD1 billion).

"After the initial public offering, the company will keep investing in entertainment videos and expand operations to second and third-tier cities," Chief Executive Feng Yousheng said at a press conference, adding that the company is incubating four or five product lines including educational live-streaming.

Focus on Post-IPO Value

Feng expressed that the platform's post-listing value rather than financing was a matter of importance for him, adding that he hopes to attract strong talent to the company on the back of boosting awareness of Inke and leveraging international capital.

"The reason why the IPO issue price ranged between HKD3.85 to HKD5 is that we want investors to yield profits and establish market confidence with this soft price, while we also want to let everyone know that our intention is not to swindle money," he added.

The company's monthly active user base growth has slowed, the listing prospectus shows, while Feng attributes this to the company's increased focus on retaining first-tier city users.

Listing After Three Years

This year represents a kind of harvest season for the venture capital invested in the past few years, Zhu Xiaohu, an investor in Inke and a partner at GSR Ventures, told Yicai Global, adding that the wave in mobile internet firm listings has only just begun, with more expected.

Regarding Inke's floatation after a mere three years in business, Feng commented, "Unlike the desktop Internet era, the mobile Internet company is heading in the right direction, and allows firms to go public in a short time."

"When an industry is in its golden age, it will account for 40 percent to 50 percent of total market capitalization," he added. "The real estate and financial industries have experienced such a golden age, but for now, the proportion of IT companies in the total market value has not yet reached 20 percent."

Many of China's recently listed firms such as Xiaomi have adopted a dual-class share structure for their IPOs, taking advantage of recently amended rules in Hong Kong aimed at enticing China's brightest new economy stars, which typically use weighted voting rights. 

Editor: William Clegg