Baba Stock – Bilibili Said Poised to Raise $2.6 Billion in Hong Kong Listing
Video streaming platform Bilibili Inc. is on track to raise about HK$20 billion ($2.6 billion) from a second listing in Hong Kong, people familiar with the matter said.
The company is telling prospective investors that it plans to price the offering at HK$808 per share, according to the people, who asked not to be identified because the information is private. The guidance represents a discount of about 2.6% to Bilibili’s Monday closing price of $106.88 on the Nasdaq. The firm is selling 25 million shares in the Hong Kong offering.
Bilibili will officially set the final price later, the people said. Its shares are due to start trading in Hong Kong on March 29. An external representative for Bilibili didn’t immediately respond to requests for comment.
A rapidly-expanding group of overseas-traded Chinese firms is selling shares in Hong Kong, attracted by hot demand for new listings in the Asian financial center. The wave of equity offerings comes as tensions rise between Beijing and the U.S., where fastest-growing technology firms from around the world have long sought to raise capital.
The trend gathered pace last year, with some $17 billion raised from second listings by the likes of JD.com Inc. and NetEase Inc. The latest to complete an offering, search engine giant Baidu Inc., is set to start trading in Hong Kong on Tuesday after raising $3.1 billion.
The deals add to what’s already shaping up as a busy year for equity offerings by internet companies, even as investors rotate out of so-called pandemic winners. Asian technology, media and telecommunications firms have been involved in $21.5 billion of share sales this year, a record for the first quarter, according to data compiled by Bloomberg.
Bilibili, whose backers include Tencent Holdings Ltd., Alibaba Group Holding Ltd. and Sony Corp., started in 2009 as a website serving up Japanese animation to eager young viewers in China. It broadened its offering to incorporate other shows as well as comics and mobile video games, generating revenue from advertising, live-streaming and premium memberships.
Like many other tech companies, it has been a beneficiary of the stay-at-home trend caused by the coronavirus pandemic, with average monthly active users increasing 55% in the fourth quarter of 2020.