China’s Weibo is hiring banks for secondary itemizing in Hong Kong, in response to sources

© Reuters. FILE PHOTO: The signage for the Weibo Corporation is displayed on the NASDAQ MarketSite in Times Square on the first day of its IPO on the NASDAQ Stock Market in New York

By Julie Zhu and Scott Murdoch

HONG KONG (Reuters) – Chinese social media platform Weibo (NASDAQ 🙂 Corp has named Goldman Sachs (NYSE :). Swiss credit (SIX 🙂 and CLSA are working on the proposed secondary listing in Hong Kong in the latter half of 2021, said two sources with direct knowledge of the matter.

A listing on China’s largest microblogging platform could raise up to $ 700 million, one of those respondents said as the company joined a wave of share sales by US-listed Chinese companies in Hong Kong.

Listed on Nasdaq, the company has a market capitalization of $ 13.2 billion and is backed by the tech giant Alibaba (NYSE 🙂 is considering selling about 5% of its expanded share capital in Hong Kong to expand its investor base, one of the sources said.

They asked not to be named as the information was not made public.

Weibo did not immediately respond to a request for comment and Goldman Sachs, Credit Suisse and CLSA declined to comment.

A listing in Hong Kong will add Weibo to Chinese companies whose shares are traded in New York and which are looking to return to exchanges closer to their home amid political tensions between the US and China.

Refinitive data shows that Hong Kong has had $ 34 billion in secondary listings since Alibaba’s $ 12.9 billion IPO in late 2019. Last year the e-tailer JD (NASDAQ :). Com raised $ 4.5 billion and game developer NetEase (NASDAQ 🙂 Inc raised $ 3.1 billion.

Other Chinese companies planning such offers include popular video site Bilibili (NASDAQ :), search engine giant Baidu Inc (NASDAQ :), and online travel major Ctrip.

Weibo, which went public in 2014, has grown 42% so far this year, outperforming the Nasdaq Golden Dragon China Index, which tracks Chinese companies listed on the US stock exchange and gained 26% over the same period.

The Beijing-based company generated $ 417 million in advertising and marketing revenue, its primary source of income, for the third quarter, unchanged from a year earlier. This was due to stiff competition from rivals like Bytedance, who run the popular short video app Douyin and online video company Kuaishou.

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