bytedance: In light of slowing growth, ByteDance's stock option offering price lowered
The decision, which a ByteDance executive said was also aimed at attracting new talent, comes as the unlisted company was valued at around USD300 billion recently, equaling roughly USD170 per share, in the private equity secondary market.
That compared with the USD300 billion-USD400 billion valuations it received in the secondaries last year, according to one of the sources, who declined to be named because they are not authorised to talk to the media.
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ByteDance's stock option programme, called Restricted Stock Unit (RSU), will be offered at USD155 per share this year and employees who were given shares at a higher price will be entitled to one-off RSU awards based on the new price, according to an internal memo.
The company offered RSUs at USD195 per share in early 2021 and USD180 before that.
ByteDance, which runs share buyback programs twice a year to motivate employees, also offered to buy shares from employees at USD142 per share earlier this year, according to one of the sources, adding that the company has no plans to lower the buyback price.
Those incentive plans come as a timeline for its much-anticipated initial public offering remains uncertain and its revenue growth slowed amid economic slowdown and Beijing's regulatory crackdown on tech sector.
Its annual revenue growth dropped to 70 percent year-on-year in 2021 from more than 100 percent growth a year earlier.
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