Baidu raises up to HK$28 billion in Hong Kong secondary listing
Baidu Inc. (9888), China's search engine giant, plans to issue 95 million shares at a maximum global offering price of $38 (HK$295) each, raising up to $3.6 billion (HK$28 billion) in a Hong Kong offering starting today till 12:00 noon on Mar. 17.
Baidu (NASDAQ: BIDU) shares, which were listed on the Nasdaq in August 2005 in terms of American Depositary Shares (ADSs), increased 12% to $272.38 (HK$2113.82) overnight boosted by its secondary listing plan in Hong Kong. Each ADS represents eight ordinary shares to be listed in Hong Kong. The ADS hit a record of $339.91 (HK$2637.33) on Feb. 19. The company will sell a total of 95 million shares under the global offering.
The final pricing of Hong Kong shares will be fixed on Mar. 17. Dealing in shares on the Hong Kong Stock Exchange is scheduled to start at 9 am on Mar. 23, Baidu said in its listing document.
Baidu generated a net income of 22.5 billion yuan (HK$ 26.92 billion), 2.1 yuan billion (HK$ 2.51 billion), and 27.6 billion yuan (HK$33.02 billion) in 2020, 2019, and 2018 respectively.
The 21-year-old company has three main growth engines: mobile ecosystem, AI cloud and intelligent driving. The core of Baidu Mobile Ecosystem is Baidu App with a monthly active user of 544 million in December 2020.
“We intend to pursue the following strategies to further grow our business: continue to invest in technology; continue to scale our AI Cloud; further develop and commercialize intelligent driving and other growth initiatives; continue to grow our Mobile Ecosystem; and selectively pursue M&A and strategic investments,” said in its prospectus.
Baidu’s listing will make it one of the Chinese technology companies that are listed in the US and have secondary offerings in Hong Kong, joining Alibaba, JD.com and NetEase.
The joint sponsors of its IPO were Bank of America Securities, Citic Securities, and Goldman Sachs while China International Capital Corp., UBS Group AG, and CCB International (Holdings) Ltd. are joint global coordinators.
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