Cloopen Group Holding, a leading multi-capability cloud-based communications solution provider in China, started trading on the New York Stock Exchange Tuesday, with the shares skyrocketing on its initial public offering (IPO) day.

The company, trading under the ticker symbol of "RAAS," announced the pricing of its IPO of 20 million American depository shares (ADSs), at 16 U.S. dollars per ADS for a total offering size of approximately 320 million dollars, assuming the underwriters do not exercise their option to purchase additional ADSs.

Each ADS represents two Class A ordinary shares of the company.

Goldman Sachs, Citigroup, and China International Capital Corporation are acting as joint bookrunners of this offering.

The Beijing-headquartered company is the largest multi-capability cloud-based communications solution provider in China, as measured by revenues in 2019. It is also the only provider in China that offers a full suite of cloud-based communications solutions, covering communications platform as a service, cloud-based contact centers, and cloud-based unified communications and collaborations, according to its prospectus.

Li Yipeng, chief financial officer of Cloopen, told Xinhua that the listing was a milestone for the company as it will help drive brand awareness and boost the company's long-term development.

Li said that there is great potential in China's cloud-based communications sector, as the application of cloud technologies to enterprise communications in China remains nascent, which enables ample room for growth.

"China's cloud-based communications industry is still in the early stages of development relative to more mature markets globally, and is experiencing significant transformation driven by rapid advancements in cloud and AI technologies. Enterprises in China increasingly focus on digital solutions and are adopting new technologies to improve the efficiency and quality of their intra- and extra-organizational communications," he said.

China's cloud-based communications industry had a total market size of approximately 35.7 billion yuan (about 5.54 billion U.S. dollars) in 2019, and is expected to increase to approximately 101.5 billion yuan in 2024, the company said in its prospectus, citing a report by China Insights Consultancy, an independent research firm.

Cloopen shares soared 200 percent from its pricing to close at 48 dollars apiece on Tuesday.

As of Monday, the S&P U.S. Listed China 50 index, which is designed to track the performance of the 50 largest Chinese companies listed on U.S. exchanges by total market cap, stood at 6,143.13, marking a 9.41-percent gain for the month-to-date returns and a 17.58-percent rise for the year-to-date returns.

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