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Bilibili to raise over USD 2 billion in Hong Kong listing

Written by Wency Chen Published on 

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Bilibili’s New Year’s Eve gala gathered 250 million viewers at its peak.

Bilibili, the popular Chinese video site, is slated to file for a secondary listing in Hong Kong at the end of this week or early next week, aiming to raise over USD 2 billion, more than the USD 1.5 billion previously anticipated, CNBC reported on Tuesday, citing sources.

Bilibili, backed by Tencent, Alibaba, and Sony, refused to comment on the news. Its US-listed stock showed strong momentum on the first two trading days of 2021, gaining 8.15% on Tuesday alone and closing at USD 102.46, up from USD 85.72 on December 31.

The increase came after a successful New Year’s Eve gala, dubbed “The Most Beautiful Night of 2020,” which attracted 250 million viewers at its peak. Over the last 12 months, the company’s stock rallied more than 300%.

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During most of last year, Bilibili provided relief and distraction for the masses locked up at home. As of end-September, its average monthly active users (MAUs) reached 197.2 million, and average daily active users (DAUs) crossed 53.3 million, representing a 54% and 42% year-on-year (YoY) increase, respectively. Its third-quarter revenue rose 74% YoY to RMB 3.2 billion (USD 475.1 million), but the net loss kept widening. The company sits on a cash pile worth USD 2.1 billion as of September 30.

In April, Sony invested USD 400 million to secure a 4.98% stake in the company. Bilibili recently launched localized services in Thailand and Malaysia, marking its first landing in Southeast Asia, where it is pitching itself against Chinese peers Tencent and iQiyi, as well as global streaming platforms like Netflix and Disney.

Coming home

A listing at the bourse in Hong Kong, closer to home, has become a preferred option for many Chinese companies. Since November 2019, when Alibaba returned after five years on the New York Stock Exchange, at least eight Chinese companies that trade in the US markets, including JD.com and NetEase, applied for secondary listings in Hong Kong.

In the midst of a trade war and following the Luckin Coffee accounting scandal, the US administration increased the scrutiny of Chinese firms. In December, the House of Representatives passed a bill that threatened with delisting if they fail to comply with inspections by regulators within three years.

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