Netease has a listing on the New York Stock Exchange on October 25.
Editor’s note: This article is from “Tencent Technology“, compiled: Ming Xuan.
US time on Tuesday, Netease has submitted an updated IPO prospectus to the US Securities and Exchange Commission (SEC), setting the IPO issue price range at $15 to $18 per share, and plans to issue 5.6 million US deposits. Certificate of vouchers (ADS). Together with the 840,000 over-allotment parts that the underwriters can execute, before deducting the fees for the issuance, brokerage commissions, etc., there will be at most $1,199.2 million in initial public offerings.
In addition, the director and Netease CEO and Director Ding Lei said that they are interested in buying the American Depositary Receipt (ADS) of the company with a value of up to US$20 million at the issue price. According to information released by IPOoutique.com, a US IPO research company, NetEase will be listed on the New York Stock Exchange on October 25 with the stock code “DAO”.
Investment Bank Citigroup and Morgan Stanley acted as joint lead underwriters for the initial public offering, with CICC, Credit Suisse and HSBC as joint deputy underwriters.
There is a dual shareholding structure after the initial public offering. A good class A and B common stocks differ only in conversion rights and voting rights. Class A common shares may not be converted into B ordinary shares; Class B ordinary shares may be converted into Class A ordinary shares. Each class A common share contains 1 share of voting rights, and Class B common shares include 3 shares of voting rights. The well-known holders of Class B common stock include Netease, the controlling shareholder of the company, Zhou Feng, the company’s chief executive officer and director, and certain individual minority shareholders, who are employees of the company, holding a total of 92.1% of the voting rights of the company.
The well-organized prospectus also shows that private placements will be synchronized at the same time as the company’s initial public offering is completed. Some investment funds managed by institutional investors, Orbis, have agreed to purchase a total of $125 million in Class A common stock at the issue price. Based on the mid-price of the US$16.50, Orbis Investment Management Co., Ltd. will purchase 7,575,758 American Depositary Shares.
Main financial data:
Major financial data for the first half of 2019
–Net revenue was RMB 548.5 million (US$79.9 million) compared to RMB 32.72 million in the same period last year. Among them, net revenue from online courses was RMB 228.2 million (US$33.2 million), compared with RMB 158 million in the same period last year.
–The revenue cost is RMB 3.896