China based online gaming Company Netease Inc. is looking forward to raise anything between $2 and $3 billion in its Hong Kong secondary initial public offering slated for later in the year. This was revealed by sources involved with the matter.
The company says its anticipating being on several secondary listings as the year progresses, even when tensions between United States and China seems to be escalating with each new day to a point U.S administration is questioning if Chinese companies should be listed in New York Stock Exchange.
According to its filings to the Hong Kong Stock Exchange, Netease will begin its institutional book build on June 1 and thereafter retail offering will run until June 5. The company says one major risk after investors proposed a U.S listing is Chinese companies could be de-listed from U.S market if their auditor fails to comply with U.S audit authority for three years.
Under a new regulation allowing U.S listed Chinese companies to seek secondary listing, Netease will become the second U.S listed Chinese company to seek a secondary listing after leading Chines e-commerce giant Alibaba Group Holding (BABA).
Another Chinese company JD.com Inc. (JD) will become the third as it’s in the process of seeking approval for a Hong Kong listing from where it intends to raise $3 billion from selling 5% of its shares.
