NetEase China Games Giant Confirms $3 Billion Share Sale in Hong Kong

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

Chinese games and social media firm NetEase is planning to raise close to $3 billion through a share sale in Hong Kong.

The company is currently listed on the U.S.’s NASDAQ exchange, and the move to create a secondary listing in Hong Kong is seen as a defensive measure, as well as a fund-raising exercise. American legislators have called for the removal of Chinese companies from U.S. stock exchanges if they fail to meet U.S. audit standards.

The company has been grilled by Hong Kong stock regulators and filed a 455-page, heavily redacted document known as a Post Hearing Information Pack. An accompanying statement shows that NetEase will sell shares at a maximum price of HK126 apiece, and raise $2.8 billion. If the issue proves popular with investors at the subscription stage, NetEase may expand the issue to $3.1 billion.

The company plans to use the net proceeds from the offering for globalization strategies and opportunities, fueling continued pursuit of innovation, and general corporate purposes,” it said blandly.

NetEase has produced some of China’s most renowned and longest running online PC-client games, including “Fantasy Westward Journey Online” and “New Westward Journey Online II,” as well as other highly successful games, such as “Tianxia III,” “New Ghost” and “Justice.” In partnership with Blizzard Entertainment, NetEase operates some of the most popular international online games in China, including “World of Warcraft,” “Hearthstone: Heroes of Warcraft,” “StarCraft II” and “Diablo III: Reaper of Souls.”

The stock offer, which would be one of the largest share issues this year, comes at a time of rising tension between the U.S. and China on a wide range of issues, ranging from blame for the coronavirus to China’s technological prowess. And it comes barely a week after China rattled capital markets and western democracies by deciding to impose a national security law in Hong Kong and bypass the legislative system in the territory.

This article was originally posted on
Home of Science
Follow me

- Advertisement -




Stock market news: Stocks gain, Dow adds 200+ points as Boeing rises

Stocks rose Monday morning, pointing to a second straight session of advances. Shares of airlines, travel and leisure stocks surged, with these stocks buoyed by...

Side Effects of Mesothelioma

Every year in the US, approximately 40,000 people are diagnosed with mesothelioma. While a number of people who are diagnosed with this cancer have...

Grocery prices are rising as eat-at-home demand soars during the coronavirus pandemic

JPMorgan says food companies have started to talk about reducing the number of promotions they offer, and Mondelez International Inc., Kellogg Co. and plenty...

5 Steps to Learn About Financing

Finance is the reason for everything in life. For business and also for everyday life you need to look at finances and decide whether...

Azza Halim, MD On: PDO Thread Lift And Carboxytherapy & Hollywoods Beauty Secrets

Celebrities like Kim Kardashian to "The Beverly Hills Housewives" have at one point or another gone through procedures to help themselves look younger, tighter and slimmer. They...
Home of Science
Follow me