The Bilibili sales space is pictured throughout the 2019 Yangtze River Delta Worldwide Cultural Industries Expo at Nationwide Exhibition and Conference Middle on November 21, 2019 in Shanghai, China.
Gao Yuwen | Visible China Group | Getty Pictures
GUANGZHOU, China — Chinese language video platform Bilibili is preparing for a secondary itemizing in Hong Kong which may increase greater than $2 billion, larger than it anticipated final yr, a supply near the matter advised CNBC.
Bilibili, which is at present listed on the Nasdaq, is prone to file for the Hong Kong public providing on the finish of this week or early subsequent week, the supply mentioned. The submitting is not going to comprise pricing particulars. These are anticipated throughout the subsequent two months, the individual mentioned.
Final yr, CNBC reported that the service, which is well-liked with Chinese language millennials, may increase between $1 billion and $1.5 billion. However during the last 12 months, its Nasdaq-listed shares have rallied over 300% — an element behind Bilibili upping the amount of cash it’s seeking to increase in Hong Kong, the supply mentioned.
Bilibili was not instantly out there for remark when contacted by CNBC.
Continued tensions between the U.S. and China have threatened Chinese language corporations listed on Wall Road. In December, President Donald Trump signed legislation that threatened to delist firms that don’t comply with American auditing standards.
That could possibly be one motive behind the rise of secondary listings in Hong Kong.
Bilibili went public on the Nasdaq in 2018 at $11.50 per American depositary share (ADS), elevating $483 million. Its shares closed at $94.74 a chunk on Monday, marking a greater than 700% rise since its preliminary public providing.
The video platform is geared toward China’s youthful generations and cell video games is its largest income driver. Bilibili additionally hosts reside broadcasts throughout which customers should buy digital objects. It additionally makes cash from promoting.
Third quarter 2020 income got here in at 3.22 billion yuan or $475.1 million, in line with the change charge on its official earnings launch. That was 74% year-on-year development.
Reasonably than Netflix-style exhibits, Bilibili depends on user-generated content material, much like YouTube.
Bilibili has been specializing in rising its consumer base this yr by boosting its content material choices. In August, the corporate signed a take care of online game developer Riot Video games, the proprietor of League of Legends, to broadcast their international occasions in China.