Bilibili (Nasdaq: BILI) powered to a new all-time high Tuesday as it prepares for a secondary listing in Hong Kong that could bring in more than $2 billion.
The New York-traded Chinese online entertainment giant could file for the listing in Hong Kong at the end of the week or early next week, as reported by CNBC today, citing a source close to the deal. But the filing will not disclose pricing, as that is expected to come sometime in the next couple of months, the news outlet said.
The offering would be upsized from what was anticipated last year, as multiple news sources reported that Billibi was looking to raise as much as $1.5 billion. In October, Nikkei Asian Review said that Billibi picked Morgan Stanley, UBS, JPMorgan, and Goldman Sachs, to manage the listing.
Bilibili will look to become the first Chinese U.S.-listed firm to bring its shares over to Hong Kong this year, as trade tensions between Beijing and Washington continue to escalate into this year. Some of Hong Kong’s biggest secondary listings in the city last year were conducted by JD.com (Nasdaq: JD; HKEX: 09618) along with its pharmaceutical unit JD Health (HKEX: 06618), as well as NetEase (Nasdaq: NTES; HKEX: 9999) and fast-food operator Yum China (NYSE: YUMC; HKEX: 09987).
Last month, in efforts to better protect the American investor, President Donald Trump signed a bill into law that could delist Chinese firms from U.S. exchanges if they refuse to comply with auditing standards.
But these tensions have not been able to slow down the momentum of Billibi’s stock. The Shanghai-based company has been rallying since mid-November when it said that its revenues surged 74% year-over-year to $475.1 million, beating Wall Street’s expectations in the third quarter. Since then, the stock has soared 112% to date.
Based on today’s new all-time high of $101.65 per American depositary share, as of early trading, the stock has now risen 783% from its IPO price of $11.50 per share in March 2018. Established in 2009, Bilibili provides live streaming, videos, and gaming. Now, the company has more than 200 million monthly active users. As its investors, Bilibili counts Tencent Holdings (HKEX: 00700), Sony (NYSE: SNE), and Alibaba Group (NYSE: BABA; HKEX 09988).