Bilibili Moving Ahead With Hong Kong Listing That Could Fetch $1.5 Billion

The online entertainment giant must wait until next year to list due to the financial hub's regulatory rules.
Anthony RussoOct 06,2020,14:49

And so another Chinese company plans a dual-listing closer to home.

New York-listed Bilibili (Nasdaq: BILI) announced that it is proceeding with its secondary listing plans in Hong Kong which could bring in as much as $1.5 billion.

The Chinese online entertainment giant has picked Morgan Stanley, UBS, JPMorgan, and Goldman Sachs, to manage the listing, as Nikkei Asian Review reported Tuesday.

The company would be following the footsteps of a slew of other large-cap Chinese U.S.-listed firms that have brought their shares to the Asian financial hub this year; a list that includes internet titans JD.com, (Nasdaq: JD; HKEX: 09618) NetEase (Nasdaq: NTES; HKEX: 09999), and the restaurant giant Yum China, (NYSE: YUMC; HKEX: 09987) which raised around $2.23 billion in its secondary listing last month.

However, there’s one small problem for Bilibili: It is mandated by Hong Kong regulators that firms need to have their first listing for at least two financial years before seeking one on its bourse. Bilibili is not in compliance just yet, as it has been only been listed in New York since March 2018. Assuming it has good regulatory compliance, Bilibili would be eligible for a listing in Hong Kong next year.

The situation is similar to the Shanghai-based digital consumer finance platform 360 Finance (Nasdaq: QFIN), which said in June that it might start its Hong Kong listing process by the end of the year. In its IPO, Bilibili raised $483 million through the sale of 42 million shares priced at $11.50 each.

While the company has performed well since the Nasdaq debut—its stock has been booming this year thanks to its entertainment offerings offered to a public forced to stay home during the pandemc. Following the report of the secondary listing, the stock in Bilibili was trading nearly 5% higher from Monday’s close at $47.39 per American depositary share in early trading today. Shares of Bilibili have surged 143% year-to-date.

"The strong run for the shares since listing on Nasdaq will certainly help,” one of the sources said, according to Nikkei.

Established in 2009, Bilibili provides live steaming, online education, and gaming. With more than 170 million monthly active users, its content is typically centered around anime and comics. As its investors, Bilibili counts Tencent Holdings (HKEX: 00700), Sony (NYSE: SNE), and Alibaba Group (NYSE: BABA; HKEX 09988).

In the three months through June, Bilibili’s revenue soared 70% year-over-year to $370.50 million on an adjusted loss of 19 cents a share. Both results were better than the Zacks Consensus Estimate.

Topics:Bilibili, 360 Finance, NetEase, Tencent, Sony, JD.com, Alibaba, Yum China,
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