Chinese video streaming platform Bilibili bags nod for HK secondary listing

Bilibili had 202 million average monthly active users in the fourth quarter, with 17.9 million paying users.

Chinese video streaming platform Bilibili Inc. received a green light from the Hong Kong Stock Exchange for a proposed secondary listing.

The Nasdaq-traded technology firm hasn’t disclosed the offering size, but Bloomberg reported it could raise $3 billion from the share sale, citing people familiar with the matter.

Bilibili, which counts Tencent Holdings Ltd., Alibaba Group Holding Ltd. and Sony Corp. as investors, will be the latest in a string of major U.S.-listed Chinese companies to make secondary offerings in Hong Kong after the U.S. threatened to remove U.S.-traded Chinese companies that fail to meet certain auditing standards.

Returning to Hong Kong has emerged as a preferred option for U.S.-traded Chinese companies seeking to expand their funding sources and functions as a hedge against potential removal from American exchanges. In the past two years, U.S-listed Chinese tech giants including Alibaba Group Holding Ltd., JD.com Inc. and NetEase Inc. have all floated shares in Hong Kong.

Chinese search engine giant Baidu Inc. is seeking to raise as much as HK$28 billion ($3.6 billion) in a secondary offering in Hong Kong, kicking off the second such share sale by a U.S.-traded Chinese company in the city this year. Other companies considering selling stock in the city include Tencent Music Entertainment Group.

Bilibili raised $483 million in its initial public offering on the Nasdaq in March 2018. Its American depositary shares have risen more than ninefold from their original offering price of $11.50, giving the company a market value of $39 billion.

Founded in 2009, Bilibili is one of the largest video-sharing platforms in China and is popular with millennials for its animation and gaming content. The company had 202 million average monthly active users in the fourth quarter, with 17.9 million paying users.

In recent years, Bilibili has sought to reposition itself as a platform not only for animation fans but also for moviegoers, gamers and merchants as competition heats up in the sector.

Bilibili beat expectations with 91% revenue growth in the fourth quarter of 2020, boosted by strong gains for its mobile gaming, advertising and e-commerce businesses. But the company continued to lose money, with the fourth-quarter net loss more than doubling to 843.7 million yuan from 387.2 million yuan a year earlier.

For the full year of 2020, Bilibili reported total net revenue of 12 billion yuan, up 77% from 2019. Its annual net loss more than tripled to 3.1 billion yuan from 1.3 billion yuan in 2019.

Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley and UBS Group AG are sponsors for the offering.

The article was first published on Caixinglobal.com

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).

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

  • 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.

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).

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

  • 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.