Bilibili Eyes Up to $3.2 Billion in Hong Kong Listing

Video streaming platform Bilibili Inc. is looking to raise as much as $3.2 billion in a second listing in Hong Kong, as the trend of Chinese companies seeking trading footholds in the city gathers pace.

Nasdaq-listed Bilibili is selling 25 million shares in the offering, according to a statement. It has set a maximum price of HK$988 for the portion of the deal reserved for Hong Kong’s retail investors, which represents a premium of 12.3% to its closing price in the U.S. on Tuesday.

Bilibili is joining a rapidly-expanding group of Chinese companies looking to sell shares in Hong Kong, pressured by tensions between China and the U.S. and beckoned by the Asian financial center’s hot market for new listings.

Such share sales gathered pace last year, with some $17 billion raised from the likes of JD.com Inc. and NetEase Inc. More U.S.-traded mainland firms, including Tencent Music Entertainment Group, are planning listings in Hong Kong.

Bilibili plans to price the offering on March 23. Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co. and UBS Group AG are leading the deal. Shares are expected to start trading on March 29, according to an emailed statement.

The company, whose backers include Tencent Holdings Ltd., Alibaba Group Holding Ltd. and Sony Corp., started in 2009 as a website serving up Japanese animation to eager young viewers in China. It broadened its offering to incorporate anime as well as comics and mobile video games, generating revenue from advertising, live-streaming and premium memberships.

Companies like Bilibili benefited last year from consumers trapped in their homes by the coronavirus pandemic. The entertainment platform had 202 million average monthly active users in the fourth quarter of 2020, a 55% increase over the same period in 2019. Mobile device users accounted for more than 90% of monthly active users in 2020, Bilibili’s latest annual report shows.

To be sure, technology stocks have been coming under pressure from investors rotating out of so-called pandemic winners on expectations of an economic recovery thanks to the rollout of coronavirus vaccines. The value of Bilibili’s American Depositary Receipts has dropped almost 28% from a record high hit in early February. Still, the ADRs are up 885% from their 2018 initial public offering price, closing at $113.31 each on Tuesday.

©2021 Bloomberg L.P.

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