China based video website Bilibili Inc. (BILI) has said that it is considering having a secondary listing in Hong Kong. Internal sources with direct knowledge on the matter made the revelation further saying renewed tensions between China and the United States is among the top reasons prompting the company make the move.
Bilibili makes the latest entry in the list of Chinese companies listed in the U.S markets who are considering securing a listing in their home market.
Bilibili held its NASDAQ initial public offering two years ago, the sources revealed currently the company is in talks with investment banks set to act as its underwriters in the secondary Hong Kong listing.
Currently, the company enjoys a market valuation of $16.2 billion, further details from the source indicate Bilibili will sell between 5% to 10% of its shares. It’s not yet been establish around how much the company will generate from the sale.
Under Hong Kong listing regulations, the earliest possible Bilibili can be listed on the market is early next year. Additionally, it will have to prove a 2 year minimum track record of good regulatory compliance from the other market before it gets listed.
This development comes one month after the U.S Senate passed a bill that could potentially ban Chinese companies not complying with regulatory measures from raising money from Americans or even they could be banned from U.S stock markets.
U.S stock markets are set to unveil new initial public offering restrictions soon, it’s being said these restrictions will make it hard for Chinese companies to get listed on U.S markets.