Bilibili Inc., the operator of a video app popular with young Chinese videogame and animation fans, is capitalizing on a huge run-up in its shares to raise nearly $3 billion in Hong Kong.
The planned secondary listing for Bilibili, whose shares already trade on Nasdaq, comes soon after Kuaishou Technology , the group behind one of China’s most popular TikTok-style apps, raised $6.2 billion from a February initial public offering in Hong Kong.
The stock sale, launched on Wednesday, will be worth about $2.8 billion based on the last closing price of Bilibili’s American depositary receipts, although the final size could be increased 15% under what is called a green-shoe option.
The company counts Tencent Holdings Ltd. , Sony Corp. and a unit of Alibaba Group Holding Ltd. among its investors. Its American depositary receipts have more than quadrupled over the past 12 months, giving it a market capitalization of nearly $40 billion, according to FactSet, although it has reported annual net losses for three straight years since going public in 2018.
The company is joining a group of U.S.-listed Chinese firms that have sold shares in Hong Kong in recent years, in part to tap investors who are more familiar with the Chinese business landscape. The share sales could also help offset the risk of a potential delisting in New York, given heightened pressure over Chinese auditing secrecy, and with some state-backed Chinese companies forced to delist after their addition to a Pentagon investment blacklist.