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NTES - NetEase Inc News Story

$103.36 2.2  2.2%

Last Trade - 14/01/22

Sector
Technology
Size
Large Cap
Market Cap £50.35bn
Enterprise Value £43.55bn
Revenue £9.56bn
Position in Universe 199th / 7386

UPDATE 1-NetEase's Cloud Village to price Hong Kong IPO shares at HK$205 each, sources say

Fri 26th November, 2021 9:28am
(Adds detail)
    By Scott Murdoch
    HONG KONG, Nov 26 (Reuters) - NetEase Inc's  NTES.O 
 9999.HK  Chinese music streaming business Cloud Village Inc
will price it shares at around HK$205 each, raising almost
HK$3.28 billion ($421 million) in its Hong Kong initial public
offering (IPO), two sources with direct knowledge of the matter
said.
    The sources could not be identified as the information has
not yet made public.
    NetEase declined to comment on the pricing. 
    The final price sits at the mid point of the HK$190 to
HK$220 range flagged when the deal launched on Tuesday.
    The deal's bookbuild was carried out amid a renewed bout of
volatility in the region's tech stocks.
    Hong Kong's Hang Seng Tech Index  .HSTECH  dropped 3.25% on
Friday which took its weekly decline to 4.74%.
    Cloud Village was selling 16 million shares in the IPO and
retains the option to sell another 2.4 million shares once the
stock starts trading as part of a so-called overallot option.
    Its shares will begin trading on the Hong Kong Stock
Exchange on Dec. 2.
    The IPO is its second attempt to list this year. The company
shelved its initial plan to raise $1 billion in August after
Chinese regulators ordered a broad toughening of rules governing
the country’s tech companies after Didi Global Inc's  DIDI.N 
listing in the United States.
    The changes prompted a global sell off of Chinese tech
stocks and soured sentiment towards Cloud Village’s deal,
sources told Reuters at the time.
    Instead, Cloud Village held off and scaled down the size of
the deal to win investors' support.
    A large chunk of the IPO had already been sold ahead of the
launch with $350 million signed up from cornerstone investors in
NetEase, Sony Music and Orbis Funds.
    


 (Reporting by Scott Murdoch in Hong Kong; Editing by Edmund
Blair and Kim Coghill)
 ((Scott.Murdoch@thomsonreuters.com;))
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