Kanzhun Limited Prices Share Offer at HK66, Raising 280.3M for Tech and Growth#

Share Offer Details#

• Offer Structure: The share offer includes 34.5 million Class A ordinary shares, with 4.5 million added via the full exercise of the offer size adjustment option. It comprises a Hong Kong public offering and an international offering, with trading expected to begin on the Hong Kong Stock Exchange on July 4, 2025, pending approval.
• Pricing: Set at HK66.00 per share (US16.82 per ADS, based on two Class A shares per ADS and an exchange rate of HK7.8499 to US1.00), below the maximum HK78.00 indicated on June 24, 2025, signaling a cautious approach to market conditions.
• Proceeds Allocation: Net proceeds of 280.3 million will fund technology and infrastructure investments, new business initiatives, strategic acquisitions, and general corporate purposes, aiming to enhance financial flexibility and stock liquidity.
• Underwriters: Goldman Sachs (Asia) L.L.C. and Morgan Stanley Asia Limited are overall coordinators, with Huatai Financial Holdings, Futu Securities, and Tiger Brokers as joint bookrunners.

Company and Market Context#

• Kanzhun’s Business: Kanzhun operates BOSS Zhipin, a leading Chinese recruitment platform with AI-powered features like resume polishing and job matching. Q1 2025 saw revenue rise 12.9% year-on-year to RMB1.9 billion (265 million) and net income double, reflecting strong growth. The platform’s 85.8 million verified job seekers and 13 million enterprise users as of March 2021 drive network effects.
• Stock Performance: The finance card above shows BZ at 17.50, down 3.42% on June 30, 2025, from 18.12 the previous day. The one-year performance reflects a 28.9% gain from 13.58 in July 2024, though below the year-high of 20.81. The month-over-month decline from 18.13 on June 27 to 17.50 aligns with a 3.79% pre-market drop post-offer announcement on June 24.
• Market Reaction: The 3.42% drop reflects investor concerns about dilution from the 34.5 million new shares, representing ~4% of the 858.9 million shares outstanding (based on a 7.82 billion market cap). However, institutional interest remains strong, with Capital World Investors and UBS AM adding 16.6 million and 8.9 million shares in Q1 2025, respectively.

Risks and Opportunities#

• Risks: The share offer’s dilution may pressure short-term stock performance, as seen in the 3.42% decline. China’s regulatory environment and U.S.-China trade tensions, potentially intensified by 2025 tariff policies, pose risks to Kanzhun’s growth. The stock’s forward P/E of ~40x (based on EPS of 0.44) suggests a premium valuation vulnerable to market corrections.
• Opportunities: The 280.3 million raised strengthens Kanzhun’s ability to invest in AI and technology, enhancing BOSS Zhipin’s competitive edge in China’s recruitment market. The platform’s 83% gross margin and 19% revenue growth signal operational strength. Expanding liquidity and a broader shareholder base via the HKEX listing could stabilize long-term investor confidence.

Conclusion#

Kanzhun Limited’s share offer, priced at HK66.00 (16.82 per ADS), aims to raise 280.3 million to fuel BOSS Zhipin’s technological advancements and growth initiatives. Despite a 3.42% stock price drop to 17.50 on June 30, 2025, reflecting dilution concerns, Kanzhun’s robust Q1 2025 performance (12.9% revenue growth, doubled net income) and institutional backing underscore its potential. Investors should weigh short-term dilution risks against long-term growth prospects in China’s recruitment sector, monitoring regulatory and macroeconomic developments in 2025.