By Yifan Wang

Shares of BAIOO Family Interactive Ltd. soared Tuesday morning, after the children's entertainment content developer secured an investment from Chinese tech giant Tencent Holdings Ltd.

The stock gained as much as 85% to a new record high of 2.90 Hong Kong dollars (US$0.37) per share within a few hours of trading.

The strong investor enthusiasm came after BAIOO said Tencent has agreed to acquire a 12% stake in it.

Tencent, which operates the popular messaging app WeChat, has made a string of investments in Chinese tech startups.

Tencent backed Kuaishou Technology, a TikTok-Style short video platform, is targeting the world's biggest initial public offering in over a year, seeking to raise about $5 billion from a Hong Kong share sale. The firm started taking investor orders Monday, and the deal could value it at more than $60 billion.

BAIOO shares were last up 34% at HK$2.10.

Write to Yifan Wang at yifan.wang@wsj.com

(END) Dow Jones Newswires

01-25-21 2227ET