Best U.S. IPO Of 2020 Generates China’s Latest Tech Billionaire

Shares in Shanghai video and voice communication platform supplier Agora soared by 153% from their IPO price of $20 last week, closing at $50.50 on their Nasdaq debut. Its one-day gain was the best among IPOs in the U.S. since the 2019 listing of Beyond Meat, according to Renaissance Capital. Insurtech firm Lemonade’s one-day gain of 134% yesterday came close but didn’t surpass Agora’s.

Continued gains by Agora this week have lifted the company’s CEO Tony Zhao into the ranks of the world’s billionaires. Agora rose 15.8% on Thursday to close at $56.49 a share, lifting the value of Zhao’s holding to nearly $1.1 billion.

Investors bid up Agora in part on hopes that Covid-19 disruptions will continue to accelerate demand for its real-time voice and video communication network services.

Agora was founded in 2013 by Zhao, who previously was a CTO and director at China’s Nasdaq-traded online streaming site YY (recently renamed JOYY). Zhao, 49, earlier worked at WebEx Communication and holds a bachelor’s degree in radio and electronics from Peking University.

Agora’s IPO gain has also rewarded some of China’s best-known venture capitalists. Richard Liu, who ranked No. 6 on the 2020 Forbes Midas List, is an Agora board member and managing director at Morningside Venture Capital; Tuck Lye Koh, who ranked No. 42 on the 2020 Forbes Midas List, is an Agora board member and CEO of Shunwei Capital, whose funds owns 7.8% of Agora. And funds managed by Jenny Lee’s GGV Capital hold a 1.8% stake; Lee ranked No. 35 on the 2020 Forbes Midas List.

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