Nasdaq-Listed Chinese Video Platform Bilibili to Do A Secondary Listing in Hong Kong, Raise up To $1.5 Billion

KEY POINTS

• Chinese video platform Bilibili is getting ready for a secondary listing in Hong Kong which might raise approximately $1.5 billion, CNBC has validated.
• Bilibili is presently noted on the Nasdaq in the U.S. The Hong Kong secondary listing is most likely to take place next year, an individual familiar with the matter informed CNBC.
• The video platform, which is popular with Chinese millennials, might raise between $1 billion and $1.5 billion, the person stated.

The Bilibili cubicle is envisioned during the 2019 Yangtze River Delta International Cultural Industries Exposition at National Exhibit and Convention Center on November 21, 2019, in Shanghai, China. Gao Yuwen|Visual China Group|Getty Images

GUANGZHOU, China– Chinese video platform Bilibili is preparing for a secondary listing in Hong Kong which could raise approximately $1.5 billion, CNBC has confirmed.

Bilibili is presently listed on the Nasdaq in the U.S. The Hong Kong secondary listing is most likely to take place next year, an individual familiar with the matter told CNBC.

The video platform, which is popular with Chinese millennials, could raise in between $1 billion and $1.5 billion, the individual stated.

The Nikkei Asian Review first reported the news.

A representative for Bilibili declined to comment when called by CNBC.

Bilibili’s secondary listing would make it the newest in a long line of U.S.-listed Chinese firms to raise cash in Hong Kong. Alibaba, JD.com, and NetEase are amongst the prominent names that have brought out secondary listings in Hong Kong in a previous couple of months.

Increasing geopolitical tensions between the U.S. and China have threatened to spill over to Chinese firms listed on Wall Street. Lawmakers in Washington are pressing for greater scrutiny of Chinese business through proposed legislation that threatens to delist some companies in the U.S.

Bilibili went public on the Nasdaq in 2018 at $11.50 per American depositary share ( ADS), raising $483 million. On Thursday, Bilibili shares closed at $46.60 apiece. This year alone, the business’s shares have risen over 150%.

The video platform is aimed at China’s younger generations and the business makes cash in a number of ways. Mobile games are its largest revenue motorist. It also hosts live broadcasts throughout which users can buy virtual items. Bilibili also earns money from marketing.

Second-quarter profits can be found in at 2.6 billion yuan ($ 370.5 million), a 70% year-on-year increase. Bilibili has 171.6 million average monthly active users.

Instead of Netflix-style shows, Bilibili relies on user-generated content, comparable to YouTube.

Bilibili has been concentrating on growing its user base this year by increasing its content offerings. In August, the business signed an offer with Riot Games, the owner of League of Legends, to relay their worldwide occasions in China.