Chinese tech giant Baidu is set to raise around HK$23.9 billion (US$3.1 billion) in its secondary listing in the Hong Kong stock market, according to a filing by Baidu.
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The company will offer 95 million new Class A ordinary shares at HK$252 (US$32.4) apiece, and it’s expected to begin trading on March 23, 2021 under the stock code “9888.” One Baidu Nasdaq-listed American depository share is equivalent to eight of its Hong Kong shares, the firm said in a statement.
The retail tranche of the deal took up 5% of the total share sale and was about 100x oversubscribed, according to a Reuters report that cited sources.
Baidu will use the net proceeds to continue investing in technology, enhance the commercialization of its innovations in AI, grow its mobile ecosystem, and diversify monetization. It will also go towards working capital and general corporate purposes to support the firm’s business operation and growth.
Baidu joins other US-listed Chinese companies that have carried out “homecoming listings,” including Alibaba Group, JD.com, NetEase, among others. There’s also video-streaming company Bilibili, which is seeking up to US$3.2 billion in its Hong Kong secondary listing.
Earlier this year, Baidu said it generated US$4.6 billion in revenue for the three months ended on December 31, which was driven by its push into new AI businesses, including cloud services and autonomous car technology.
Currency converted from Hong Kong dollar to US dollar: US$1 = HK$7.76.
Editing by Collin Furtado and Eileen C. Ang
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