China based online gaming company Netease Inc. (NTES) managed to raise a total of $2.7 billion in its Hong Kong initial public offering held on June 4. This listing goes down as the secondary listing by the company as it is also listed in the New York Stock Exchange.
Insider sources at the company revealed Netease priced its shares at HK$123 ($15.87) per share in the Hong Kong IPO.
According to regulatory filing earlier submitted by the company, Netease had planned to issue 171.48 million shares with an option of adding an extra 25.72 million shares under a plan known as the ‘greenshoe option’.
The Hong Kong price is equivalent to the stock price in the U.S market which stood at $396.70 as of close of market on June 4. Under the term of the deal, one American depository receipt (ADR) is equivalent to 25 shares of the company listed in the Hong Kong market.
Also in its regulatory filing Netease had indicated that it intends to use the cash to expand its international business and penetrate into new markets globally.
Shares of the company will be available for public trading starting June 11. This listing goes down as among biggest secondary listings in Hong Kong even as the U.S authorities are questioning whether Chinese companies should be allowed to list in their markets as disputes between the world’s two largest economies intensifies.
