NetEase to Raise $2.7 Billion in Hong Kong Listing Description video: Jun.09 — There seems to be no shortage of demand for new shares of NetEase. The Chinese game maker says it expects to raise $2.7 billion from its secondary […]
NetEase to Raise $2.7 Billion in Hong Kong Listing
Jun.09 — There seems to be no shortage of demand for new shares of NetEase. The Chinese game maker says it expects to raise $2.7 billion from its secondary listing in Hong Kong. The initial allocation of shares was oversubscribed by more than 360 times. Bloomberg’s Gregor Stuart Hunter reports on “Bloomberg Daybreak: Asia.”
NetEase Shares To Be Traded On The Hong Kong Stock Exchange On June 11
China’s NetEase Priced Its Upcoming Secondary Listing In Hong Kong At HK $ 123 Per Share.
As part of this placement, the Internet giant will issue more than 171 million new shares, thereby expecting to raise about $ 2.72 billion.
NetEase has been listed on the Nasdaq exchange since 2000. The company announced that 25 ordinary shares will be cost of one American Depositary Share, or ADS, quoted on the Nasdaq.
The company has provided the investment banks with which it works with a so-called recalculation option, which can be exercised within 30 days starting June 5. This will allow banks to issue up to 27 722 additional shares if there is demand.
It is expected that trading in the company’s securities will start on June 11.
NetEase Hong Kong listing comes amid growing U.S.-China tensions that threaten to impact Chinese Wall Street listed companies. American lawmakers are also pushing for more thorough regulation of China’s business with the help of new legislation that threatens to exclude certain Chinese market participants from the list of companies traded in the United States.
Many Chinese brands such as Alibaba and NetEase were registered in the United States as Hong Kong Stock Exchange rules did not allow for two-class share structures. However, these rules have changed at the moment..
Lots of companies are now returning to Hong Kong. Alibaba held large secondary listing last year, while its main competitor JD.com plans to do the same very soon.
China International Capital Corporation (or CICC), Credit Suisse and J. P. Morgan are known to be co-sponsors and co-global coordinators for NetEase listing.