Bilibili Up 5% on Confidentially Filing for Hong Kong Listing

The online entertainment giant could raise more than $2 billion from the share sale.
Anthony RussoJan 12,2021,15:18

Shares of Bilibili (Nasdaq: BILI) rose 5% in early trading Tuesday after the company confidentially filed for a secondary listing in Hong Kong.

The Chinese online entertainment giant filed for the listing confidentially a few days ago, as reported by CNBC Tuesday, citing a source familiar with the situation move.

The news outlet reported last week that Bilibili could file for the listing this week. As expected, Bilibili did not disclose pricing, which may not come until the next couple of months. When more details are unveiled, the New York-trade firm could aim to fetch more than $2 billion from the share sale.

The filing would put Bilibili on track to join other Chinese U.S.-listed firms that have flocked to Hong Kong amid escalating trade tensions between Beijing and Washington. 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).

As Sino-U.S. trade tensions have continued to worsen, President Donald Trump signed legislation into law last month that could delist Chinese firms from U.S. exchanges if they refuse to abide by auditing standards. In addition to moving their shares closer to home in Hong Kong, some Chinese companies have even been weighing buyout proposals over the past year with many opting to go private. Washington’s crackdown on Chinese companies began but did not listed in the U.S began but did not end with the scandalous actions of Luckin Coffee (OTC: LKNCY)

However, despite the Sino-American tensions, Bilibili’s stock has continued to pick up momentum. On Friday, the Shanghai-based company hit a new all-time high of $120.80 per American depositary share. Early Tuesday, the stock was trading at $118.24 per share, up 928% from its IPO price of $11.50 per share in March 2018.

Established in 2009, Bilibili provides live streaming, videos, and gaming. Now, Bilibili has more than 200 million monthly active users. As its investors, Bilibili counts Tencent Holdings (HKEX: 00700; OTC: TCEHY), Sony (NYSE: SNE), and Alibaba Group (NYSE: BABA; HKEX 09988).

Topics:Bilibili, JD.com, JD Health, Sony, NetEase, Yum China, Tencent, Alibaba, Luckin Coffee.
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