BUSINESS NetEase shares rise on Hong Kong market debut

BUSINESS

NetEase shares rise on Hong Kong market debut

Xinhua

11:35, June 11, 2020

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HONG KONG, June 11 (Xinhua) -- NetEase Inc.'s shares rose strongly on its Hong Kong market debut Thursday morning as the tech firm became the second U.S.-listed Chinese company to finish homecoming secondary listing after Alibaba.

Shares of the internet giant started trading at about 133 Hong Kong dollars (17.16 U.S. dollars), more than eight percent higher than its offering price of 123 Hong Kong dollars.

NetEase won enormous popularity among retail investors ahead of Thursday's trading as its offering was oversubscribed about 360 times.

The company issued about 171 million new ordinary shares to raise 21.09 billion Hong Kong dollars to finance its global strategies, innovation and general corporate purposes.

Its underwriters can also exercise an over-allotment option to require the company to issue up to 25.72 million additional shares.

NetEase first went public on the Nasdaq in 2000 as the first batch of Chinese internet stocks to land in the U.S. stock market. Its Hong Kong listing followed Alibaba's mega fund-raising worth more than 100 billion Hong Kong dollars last November.

According to the company's prospectus, listing in Hong Kong will offer it greater access to capital markets in Asia and attract a broader range of investors more representative of its user base.

The company's American depositary shares will continue to trade on the Nasdaq.

As the world's second largest mobile game company, NetEase raked in 59.24 billion yuan (about 8.39 billion U.S. dollars) of revenues last year, up from 51.18 billion yuan in 2018. 

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