Chinese streaming site Bilibili sinks on Hong Kong debut after $2.6 bn IPO, Telecom News, ET Telecom
Bilibili’s opening price fell just over 6 percent at the start of trading after the company raised about $ 2.6 billion in a secondary listing on the Hong Kong Stock Exchange.
Over the past 18 months, Hong Kong has seen a wave of Chinese technology companies make initial public offerings in the city, part of a bid to list them closer to home as Beijing-Washington relations.
Last year, Hong Kong won an impressive $ 49 billion in initial public offerings with hugely popular second listings from JD.com and NetEase.
Chinese technology meetings continue in 2021, but with less investor enthusiasm.
Debut in Hong Kong by Chinese search engine Baidu last week raised $ 3.1 billion through an IPO, but its shares ended on the opening day and have since fallen by about 15 percent.
US-China tensions remain at the forefront of investor concern.
Last week, U.S. regulators announced plans to force Chinese companies to adhere more strictly to their audit rules, raising concerns about the potential removal of the listing from the United States and a global sell-off of Chinese technology stocks.
Bilibili is already on the list in New York.
This is a fast-growing video streaming site with about 200 million mostly young Chinese users.
Often referred to as “Chinese YouTube”, it allows users to upload and share videos with voice commands and added music, and hosts a significant amount of user-generated content.
Founded in 2009 by Xu Yi College, a 20-year-old college student, it began primarily as a gathering and sharing site for fans of games and anime, but has since been distributed to Chinese users by Gen Z.
Bilibili CEO Chen Rui reduced short-term declines in market prices by invoicing his company as a website ready to use nearly one billion from China Internet users.
“We wouldn’t be too interested in the short-term results of the stock market,” the 43-year-old billionaire told Bloomberg Television in what the network said was his first interview with international media.
“No one will remember if your stocks have increased or decreased since their debut in 10 years.”
In recent years, Chen has been seen as the real engine of Bilibili’s success, convincing Chinese technology rivals Tencent and Ali Baba to get on board as early investors as well Sony.
The videos “will be a major trend for the Internet industry over the next three to five years,” Chen told Bloomberg.
“The market will grow at an extremely high rate over the next few years. Popular video platforms like ours will have great potential.”
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