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NetEase Cloud Music is due to go on sale in Hong Kong on December 2 with a maximum price of HK$220

via:新浪科技     time:2021/11/23 11:03:51     readed:65

Journalist/Wu Yuli

NetEase Cloud Music is about to land on the Hong Kong Stock Exchange.

On November 23rd NetEase Announced an initial public offering in Hong Kong, offering 16m common shares worldwide at HK$190-220 ($155.72-1) each 80.31 yuan), with an additional over-allotment rights of not more than 15% to raise HK$3.04-3.52 billion (approximately HK$2.49 billion to HK$2.89 billion). According to the plan, NetEase Cloud Music will be listed on the morning of December 2nd, the code "9899.HK".

NetEase Cloud Music plans to sell 16m shares worldwide, 90 per cent of which will go to international investors, or about 14.4m shares, and 10 per cent to Hong Kong, with about 1.6m shares, according to the prospectus. The offer price is HK$190 to HK$220 (APPROXIMATE$155.72-180.31) /share and is proposed to raise HK$3.04-3.52 billion (APPROXIMATE$2.49 billion-2.89 billion). Based on this calculation, NetEase Cloud Music's post-market valuation will be between HK$39.47 billion and HK$45.71 billion (about HK$32.37 billion to RMB37.48 billion).

At the same time, NetEase Cloud Music plans to grant international underwriters an over-allotment rights of no more than 15% of the initial number of shares available for subscription under the global offering.

According to the prospectus, assuming that the over-allotment is not exercised, netease cloud music public offering shares accounted for 7.7% of the total issued shares.

NetEase Cloud Music has brought in three cornerstone investors, NetEase, Sony Music Entertainment and Orbis Investment Management Limited, to subscribe for a combined $350m (about HK$2.73bn) stake, according to the prospectus. Among them, NetEase subscribes for $200m (about HK$1.56bn), Sony Music Entertainment for $US100m (ABOUT HK$780m) and Orbis for US$50m (about HK$390m).

According to the newly announced schedule, NetEase Cloud Music plans to launch its global launch on November 23, announce final pricing and placements on December 1, and officially list on the Hong Kong Stock Exchange at 9 a.m. on December 2.

NetEase Cloud Music was launched in April 2013 and is a music product owned by NetEase. In the first three quarters of this year, NetEase Cloud Music's total revenue was RMB5.1 billion, up 52% YoY, gross margin increased to 0.4%, monthly live subscribers reached 184 million, online music paying subscribers reached 27.52 million, up more than 93% YoY, and online music payout rate reached 14.9%, according to the prospectus. Its revenue growth, pay-per-user growth and online music payment rate are among the highest in the industry.

In August this year, NetEase Cloud Music through the Hong Kong Stock Exchange listing hearing, but then there was news that NetEase Cloud Music suspended the listing, the relevant person in charge had told Yan News, at that time, based on the overall market environment and other comprehensive factors, the company decided to suspend the IPO, and will choose a better time to promote the IPO-related matters as soon as possible.

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