Chinese video streaming platform Bilibili is set to raise HK$20.2 billion ($2.6 billion) from a secondary listing in Hong Kong, the company confirmed.
Bilibili priced the offering at HK$808 ($104) per share, according to a filing with the Hong Kong stock exchange on Tuesday. The price represents a 2.6% discount compared to the Monday closing price of $106.88 in the US.
The Nasdaq-listed company sold 25 million shares during the Hong Kong offering and set a maximum price of HK$988 per share for retail investors.
Bilibili’s shares are expected to enter trading in Hong Kong next Monday, with Morgan Stanley, Goldman Sachs, JPMorgan and UBS Group leading the offering.
The company said it plans to use the fresh funds to support user growth, content ecosystem, community development and R&D to improve the platform’s user experience and sales and marketing.
Founded in Shanghai in 2009, the fast-growing platform initially offered animation content and later expanded into other areas including documentaries, e-sports, mobile games and TV series. It generates revenue from advertising, live-streaming and paid memberships.
The platform, also nicknamed B Site (B站) in Chinese, is best known for its real-time captioning system called bullet-screen comments, or danmu (弹幕), that formats and displays user comments as streams of scrolling subtitles overlaid on videos, creating a chat room experience for viewers.
According to its listing documents, the platform garnered 202 million monthly active users at the end of the December quarter, up 55% year-on-year. Total net revenues reached 3,840.1 million yuan (US$588.5 million), a 91% increase from the previous year.
The company, backed by Tencent Holdings Ltd and Alibaba Group Holdings, is the latest US-listed Chinese company to seek a secondary listing in Hong Kong over the last 14 months. Others include Alibaba, JD.com, NetEase and Baidu, which started trading on Tuesday.