China’s Weibo hires banks to go public in Hong Kong, sources say By Reuters

By Julie Zhu and Scott Murdoch HONG KONG (Reuters) – Chinese social media platform Weibo (NASDAQ 🙂 Corp has appointed Goldman Sachs (NYSE :), Credit Suisse (SIX 🙂 and CLSA to work on its planned Hong Kong sublist. Kong in the final semester of 2021, said two sources with direct knowledge of the matter. The listing for China’s largest microblogging platform could raise as much as $ 700 million, one of those people said, as the company joined a wave of Hong Kong stock sales by US-listed Chinese companies. The Nasdaq-listed company, which has a market capitalization of $ 13.2 billion and is backed by tech giant Alibaba (NYSE :), is considering selling about 5% of its expanded share capital in Hong Kong to expand the investor base, one of the sources. saying. They asked not to be named because the information has not been made public. Weibo did not immediately respond to a request for comment, and Goldman Sachs, Credit Suisse and CLSA declined to comment. A listing in Hong Kong adds to Weibo Chinese companies whose shares are listed in New York seeking to return to the exchanges closest to home amidst political tension between the United States and China. Refinitiv data shows $ 34 billion in secondary listings in Hong Kong since Alibaba’s $ 12.9 billion float in late 2019 last year, e-tailer JD (NASDAQ :). Com raised $ 4.5 billion and game developer NetEase (NASDAQ 🙂 Inc raised $ 3.1 billion. Other Chinese companies planning these types of listings include popular video site Bilibili (NASDAQ :), search engine giant Baidu Inc (NASDAQ :), and online travel company Ctrip. Weibo, which went public in 2014, has seen its shares gain 42% so far this year, outperforming the Nasdaq Golden Dragon China Index, which tracks Chinese firms listed on the US stock market and has risen 26% during the same period. The Beijing-based company reported $ 417 million in advertising and marketing revenue, its main source of revenue, in the third quarter, year-over-year, following fierce competition from rivals, such as Bytedance, which runs the popular video app. Douyin shorts and Kuaishou online video company.

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