Chinese video site Bilibili considers secondary Hong Kong listing

Rui Chen, chairman and chief executive officer of Bilibili Inc., stands for a photograph during the company's initial public offering (IPO) outside of the Nasdaq MarketSite in New York, U.S. Photographer: Michael Nagle/Bloomberg

Chinese video site Bilibili is considering a secondary listing in Hong Kong, said two people with direct knowledge of the matter, joining other U.S.-listed Chinese companies eyeing a return to the exchange closer to home amid China-U.S. tensions.

The company, which is backed by Chinese tech giants Tencent and Alibaba and went public on Nasdaq in March 2018, has held preliminary talks with investment banks about the secondary listing prospect, the people said.

Bilibili, with a current market capitalisation of $16.2 billion, is mulling selling between 5% and 10% of its shares, one of them said. It was not immediately clear how much the company is aiming to raise as the talks are in the early stages.

Bilibili will only be able to list in Hong Kong next year, however, the people said, as under the city’s listing rules, it has to have a track record of at least two financial years of good regulatory compliance on another qualifying exchange.

Bilibili did not respond to an emailed query for comment. Calls to its investor relations office went unanswered. The people with knowledge of the matter declined to be named as the information is confidential.

A Hong Kong listing for Bilibili would follow in the steps of several Chinese peers.

Alibaba raised $12.9 billion in a secondary listing in November 2019. More recently e-tailer JD.com raised $3.9 billion and games developer NetEase Inc raised $3.1 billion.

The plan comes as the U.S. Senate passed legislation in May that could ban Chinese companies not adhering to Washington’s regulatory and audit standards from listing shares on U.S. exchanges or raising money from American investors.

Nasdaq will also unveil new restrictions on IPOs, a move that will make it harder for some Chinese companies to list on its bourse.

Starting out as an animation site popular with teens, Bilibili is expanding into areas such as documentary, e-sports, and music videos, attracting more than 130 million monthly active users.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.