It will be one of the largest stock transactions so far this year.
I learned that on June 1, NetEase announced the launch of Hong Kong ’s initial public offering with the code “09999.HK”. Netease will publicly issue 171.5 million new ordinary shares in Hong Kong at , with a maximum selling price of HK $ 126 per share. Based on this calculation, Netease will raise about 21.6 billion Hong Kong dollars (about 2.8 billion US dollars) for its secondary listing in Hong Kong.
NetEase mentioned in the statement that after listing in Hong Kong, the company ’s stock will be fully interchangeable with the American Depository Receipt (ADS) listed on the NASDAQ . CICC, Credit Suisse and JPMorgan Chase are the joint sponsors and joint global coordinators of the proposed offering.
For fund-raising purposes, NetEase said it intends to use it for globalization strategies and opportunities, to promote the continuous pursuit of innovation and for general corporate purposes.
NetEase ’s fundraising scale of approximately US $ 2.8 billion is at the upper limit of the market ’s originally expected range. On the morning of June 1, Reuters quoted three people familiar with the matter as saying that NetEase plans to start the IPO process in Hong Kong on June 1, with a financing scale of between US $ 2 billion and US $ 3 billion. This will be one of the largest stock transactions so far this year.
On the last trading day, Netease ’s share price closed at US $ 382.9, with the latest market value of US $ 49.469 billion.