Weibo (Nasdaq: WB) is seeking a secondary listing on the Stock Exchange of Hong Kong as early as this year. Following a slew of listings in 2020, the platform is the latest U.S.-listed Chinese internet giant to explore funding opportunities closer to home.
China’s largest microblogging platform, similar to Twitter (NYSE: TWTR), is working with advisors on the potential deal, as reported by Bloomberg today, citing people familiar with the matter.
U.S-listed Chinese firms flocked to Hong Kong ever since e-commerce giant Alibaba (NYSE: BABA; HKEX: 9988) completed its $13 billion offering in the city in November 2019.
Over the past 12 months, large-cap firms including online retailer JD.com (Nasdaq: JD; HKEX: 9618) and gaming giant NetEase (Nasdaq: NTES; HKEX: 9999) raised around $17 billion through their secondary offerings in the city, according to data compiled by Bloomberg. Fast-food operator Yum China (NYSE: YUMC; HKEX: 9987) also completed its secondary listing in Hong Kong last year, raising around $2.23 billion.
Along with Weibo, China’s largest search engine Baidu (NYSE: BIDU) and music conglomerate Tencent Music Entertainment Group (NYSE: TME), are reportedly nearing their secondary listings that could fetch $3.5 billion each, Bloomberg has previously reported.
Parent Sina Corp. (Nasdaq: SINA) established Weibo in 2009, which has developed into one of the largest social media platforms in China. As of September, Weibo had 511 million monthly active users. Alibaba holds a minority stake in Weibo.
In the third quarter, Weibo posted revenues of $465.7 million on earnings of 15 cents per share. The results were mixed, as analysts were looking for revenues of $451.4 million on profit of 51 cents per share.
In early trading Thursday, the stock in Weibo was down 1%, at $58.12 per American depositary share. Currently, the company is valued at more than $13.2 billion.
Shares of Weibo have risen 42% year-to-date.