Gaming giant Netease to list in Hong Kong on June 11 · TechNode

Chinese tech giant Netease announced its long-anticipated Hong Kong listing on Tuesday, offering a detailed plan for its debut on June 11.

Why it matters: Netease will be the second US-listed Chinese tech giant to launch a secondary listing on the Hong Kong stock exchange, following Alibaba’s blockbuster Hong Kong listing in November.

  • Netease’s deal, hailed as a homecoming, will be Hong Kong’s largest listing so far in 2020, according to Refinitiv data cited by Reuters.
  • is reportedly also planning a dual listing in Hong Kong as early as June.
  • Tech majors like Baidu and Ctrip are reportedly planning similar moves, according to news reports.

Details: The company will make its debut on the Hong Kong stock exchange on June 11 with the ticker “9999,” according to the company filing on Tuesday.

  • Netease plans to offer a total of 171,480,000 shares in the global offering. Of the total, 5.15 million shares will be offered locally in Hong Kong and 166.33 million shares will be offered internationally.
  • The public offer price will not exceed HK$126 ($16.26) per share. Reuters reported that the company is aiming to raise around $2.6 billion through the secondary listing.
  • CICC, Credit Suisse, and J.P. Morgan will serve as the joint sponsors and joint global coordinators for the deal.
  • The proceeds will be used for “globalization strategies and opportunities.”

Context: Netease, traded publicly on Nasdaq since June 2000, earns nearly 80% of its revenue from gaming. The Tencent rival has more than 140 mobile and PC games across various genres.

  • Netease’s e-learning unit Youdao went public on the New York Stock Exchange in 2019.
  • Netease Cloud Music is second to leader Tencent Music in terms of user base, according to data analytics service Jiguang. Netease is planning a separate listing of its music business, which the company said had more than 800 million registered users in 2019.
  • The company has a number of other businesses including private label brand e-commerce platform Netease Yanxuan, cross-border e-commerce marketplace Kaola, which it sold to Alibaba for $2 billion in September, as well as an online media outlet, an e-mail service, and others.

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at

Source link

What do you think?

Written by Aakash Malu


Leave a Reply

Your email address will not be published. Required fields are marked *





MakeMyTrip lays off 350 employees due to COVID-19 impact

Is it the right time to venture into entrepreneurship?