Chinese social networking giant Tencent Holdings Ltd. briefly passed US peer Facebook Inc.in market value to become the world's fifth most valuable company, following a major rally on bullish sentiment about the former's growth prospects.
Tencent is well known in the industry as the manufacturer of the instant messaging app, WeChat, not to mention a number of online games.
By Tuesday afternoon, Tencent's market capitalisation had reached 4.15 trillion Hong Kong dollars ($531 billion), surpassing the U.S. social network's $519 billion. Since then, it has rallied 11,251 per cent. Tencent's stock this year alone is up 121.4 per cent.
China's biggest social media company Tencent is now worth more than Facebook
Tencent has also acquired stakes in both Tesla and Snap (both U.S companies), and invested in numerous start-ups in Asia, including India's Uber rival Ola. Tencent reported a 61 percent increase year over year in total revenue and operating profits grew 57 percent year over year. This came after the market value for the company reached a record $500 billion.
During 2016, Tencent acquired the majority stake of Supercell a smartphone maker based in Finland. Games such as Honour of Kings, Dungeon Fighter Online, Clash of Clans, and League of Legends. The messaging app has 500m users in China which acts as a "portal" for thousands of different products, from payments to customer service.
However, the company is not satisfied.
Shares of the 19-year-old group, which is scheduled on the Hong Kong Exchange, assembled to attain HK$418.80 to offer it a market top of HK$3.99 billion which surpasses the $500 billion grade. The company reportedly raised $8.3 billion Hong Kong dollars ($1.1 billion) after Tencent priced its 151 million shares at $55 Hong Kong dollars ($7.05) per piece.
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