Chinese Video-Sharing Website Bilibili Is Preparing For Its Secondary Listing In Hong Kong

The popular Chinese video-sharing platform Bilibili is preparing itself for a secondary listing in Hong Kong after it listed itself on NASDAQ. Bilibili is gearing up to raise around USD 1.5 Billion through its next listing, Nikkei reported, citing two people familiar with the matter said. The company is planning to list on the Hong Kong stock exchange next year.

Various Chinese tech companies are in line to list their companies on the Hong Kong stock exchange this year. For instance, Alibaba’s fintech company Ant is planning for simultaneous listing in Hong Kong and Shanghai. A few months back, the Chinese e-commerce giant raises around USD 3.9 in its Hong Kong listing. The online gaming platform NetEase carried out its secondary listing in Hong Kong by at least raising USD 2.7 Billion earlier this year.

Bilibili’s whose major investors are Alibaba Group Holding, Sony, and Tencent Holdings have hired JPMorgan, Morgan Stanley, and UBS as the lead underwriters for the initial public offering (IPO). The company raised around USD 483 Million in its NASDAQ IPO in March 2018. Currently, it holds a valuation of around USD 15.7 Billion. Since its listing on NASDAQ, its stock has surged four-fold while it has doubled this year.

The company founded in 2009, started its journey by providing comics for anime fans and expanded itself to provide online entertainment platforms which include digital education, live-streaming, and games. Last year, its income from live-streaming and advertising has witnessed a growth of more than 200% while its revenue has risen by 69% to USD 721.4 Million in the first half of the year in 2019. Bilibili has around 170 Million monthly visitors on its visitors. The content on its platform is created by its users which is similar to YouTube.

In August 2020, Bilibili signed a deal with Riot Games to broadcast its global events in China. Next month, it completed its strategic investment in media company Huanxi Media. As of now, it approximately holds a 9.9% share in the company.

“Work on a draft prospectus has begun and we will start lining up meetings with potential investors to gauge the appetite for the offering,” Nikkei reported. “The strong run for the shares since listing on Nasdaq will certainly help.” Many Chinese tech companies are opting for Hong Kong as a secondary listing as they’re facing stringent regulatory scrutiny from U.S. regulators. Since last year, around eight companies have listed themselves on NASDAQ while have raised USD 25 Billion in Hong Kong listing.

Earlier this year, the U.S. Senate proposed a bill that can force Chinese companies to give up their listing in the U.S. “We believe it is only a matter of time before this bill (or something similar) is signed into law,” Raymond James analyst Ed Mills wrote. The Senate bill would require Chinese companies to certify that they are owned by a foreign government. On Thursday, the Chinese wealth management company Lufax filed for U.S. IPO. In its SEC filing, the company warned that “a severe or prolonged downturn in the Chinese or global economy could materially and adversely affect our business and financial condition.”