Nasdaq-listed Chinese language video platform Bilibili to boost over $2 billion in Hong Kong itemizing

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The Bilibili sales space is pictured in the course of the 2019 Yangtze River Delta Worldwide Cultural Industries Expo at Nationwide Exhibition and Conference Heart on November 21, 2019 in Shanghai, China.

Gao Yuwen | Visible China Group | Getty Photos

GUANGZHOU, China — Chinese language video platform Bilibili is preparing for a secondary itemizing in Hong Kong which might increase greater than $2 billion, greater than it anticipated final 12 months, a supply near the matter advised CNBC.

Bilibili, which is at the moment listed on the Nasdaq, is more likely to file for the Hong Kong public providing on the finish of this week or early subsequent week, the supply stated. The submitting won’t include pricing particulars. These are anticipated throughout the subsequent two months, the individual stated.

Final 12 months, CNBC reported that the service, which is in style with Chinese language millennials, might increase between $1 billion and $1.5 billion. However during the last 12 months, its Nasdaq-listed shares have rallied over 300% — an element behind Bilibili upping the sum of money it’s trying to increase in Hong Kong, the supply stated.

Bilibili was not instantly accessible for remark when contacted by CNBC.

Quite a few U.S.-listed Chinese language corporations have flocked to Hong Kong for secondary listings during the last 14 months together with Alibaba, JD.com and NetEase.

Continued tensions between the U.S. and China have threatened Chinese language corporations listed on Wall Avenue. In December, President Donald Trump signed legislation that threatened to delist firms that don’t comply with American auditing standards.

That could possibly be one motive behind the rise of secondary listings in Hong Kong.

Bilibili went public on the Nasdaq in 2018 at $11.50 per American depositary share (ADS), elevating $483 million. Its shares closed at $94.74 a bit on Monday, marking a greater than 700% rise since its preliminary public providing.

The video platform is aimed toward China’s youthful generations and cell video games is its largest income driver. Bilibili additionally hosts dwell broadcasts throughout which customers can purchase digital gadgets. It additionally makes cash from promoting.

Third quarter 2020 income got here in at 3.22 billion yuan or $475.1 million, based on the alternate charge on its official earnings launch. That was 74% year-on-year progress.

Fairly than Netflix-style exhibits, Bilibili depends on user-generated content material, just like YouTube. 

Bilibili has been specializing in rising its consumer base this 12 months by boosting its content material choices. In August, the corporate signed a take care of online game developer Riot Video games, the proprietor of League of Legends, to broadcast their world occasions in China.