China Q&A Site Zhihu Is Said to Mull Hong Kong IPO: Paper
(Bloomberg) -- Chinese question-and-answer website Zhihu Inc., which went public in the U.S. in March this year, is said to be considering another initial public offering in Hong Kong, local media the Paper reported Saturday.
The Beijing-based company plans to submit documents for its share offerings in Hong Kong in January, the Paper reported, citing unidentified people.
The report cited public registry records as showing that some of Zhihu’s major shareholders, including a firm associated with Tencent Holdings Ltd, have pulled out, leaving Chief Executive Officer Zhou Yuan with a 99.3% holding in the company, while Chief Technology Officer Li Dahai owns the remaining stake.
Zhihu told the Paper an ownership change is standard practice for Chinese companies that list overseas, and the major shareholders and their stakes in the company are unchanged.
Zhihu shares have tumbled 44% following the company’s IPO on the New York Stock Exchange in late March. Earlier this week, Beijing’s internet regulator also summoned the website operator for publishing and transferring information that is banned. The company vowed to suspend related functions while it rectifies the problem.
China Regulator Probes Q&A Site Zhihu for Possible Fines
Beijing is tightening scrutiny of domestic firms’ overseas share sales amid concern that these listings could pose national security threats if companies held sensitive data. China’s security watchdog on Friday said all Chinese businesses planning IPOs and additional share sales abroad would have to seek the approvaal of the China Securities Regulatory Commission.
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