Hong Kong’s frigid office leasing market got a recent whiff of spring when ByteDance Ltd., operator of the hugely popular Douyin and TikTok short-video apps, leased a huge space of about 2,000 square meters at International Finance Centre (IFC), one of the city’s most premium properties, for HK$2.4 million ($380,000) per month. Observers are guessing the world’s most valuable tech unicorn made the large commitment as part of preparations for an upcoming IPO in Hong Kong.
But the winds have been blowing hot and cold for the world’s hottest tech company over the past year, taking a huge bite out of its valuation, even as it remains hugely profitable.
The company founded by entrepreneur Zhang Yiming has taken China and the world by storm over the last few years with Douyin and TikTok, which have developed huge followings in China and across the globe. The company, which remains private, outperformed Alibaba (BABA.US; 9988.HK) and Tencent (0700.HK), China’s two most valuable tech companies in terms of EBITDA last year to become the most profitable internet company in China, the Financial Times reported, quoting two investors with access to ByteDance's annual report.