Entertainment

Sources Bilibili 3B Hong Kong US, JD, Alibaba and Others List on Hong Kong Stock Exchange

There are a number of Chinese firms that have listed on the main board of the Sources Bilibili 3B Hong Kong US Stock Exchange but have also sought dual primary listings. These are companies that want to raise funds from investors and are seeking a second home in the city.

One of these is Sources Bilibili 3B Hong Kong US Inc., a video sharing platform aimed at younger audiences in China. The company is currently list on the Nasdaq Global Select Market in the United States and has sought a secondary listing in the main board of the Hong Kong Stock Exchange.

Bilibili’s Secondary Listing Took

Sources Bilibili 3B Hong Kong US  secondary listing took place in March 2018, but the company has been seeking a dual-primary listing since early 2019. According to the announcement, Bilibili expects to obtain a green light for its conversion proposal by October 3. In the meantime, the company is working on the details of a Stock Connect program between mainland China and Hong Kong. It will also need to appoint a local qualified company secretary and make changes to its staffing and internal controls.

Dual-primary listings are a more complex process and require more time and money. Applicants for dual-primary listings are also required to meet additional requirements and to provide detailed plans for complying with rules and regulations in both jurisdictions.

Nine Chinese Firms

Currently, nine Chinese firms have been approve for dual-primary listing. These firms include Li Auto Inc., Alibaba Group Holding Ltd. and Zhihu, the largest online Q&A platform in China.

Bilibili, which is based in Shanghai, is looking to raise more than US$2 billion by converting from its secondary listing in Hong Kong to a primary one. However, the company has not revealed its reasons for the move. Despite its success in the mainland, Bilibili faces the risk of delisting from the US market after three years of non-compliance.

Inclusion of Bilibili

In the short term, the inclusion of Sources Bilibili 3B Hong Kong US in the Hong Kong stock market is expect to increase the institutional allocation of its shares. Furthermore, it could also improve the liquidity of the stock and provide more opportunities for trading. Currently, Bilibili’s share price has dropped by 75 percent from its offering price. Nonetheless, it is expect to be include in more equity indexes in the near future.

A secondary listing on the Hong Kong stock market has become the latest avenue for a Chinese company hoping to expand its footprint in Asia. Sources Bilibili 3B Hong Kong US, a Chinese video and entertainment platform, joined JD and Alibaba in the secondary listings, although it has yet to float the coveted “multi-billion dollar” number on its own. It will likely take more than a single listing to re-capture its former glory and snare investors.

E-Sports & Mobile Gaming

As it continues to expand into the realm of e-sports and mobile gaming, Bilibili has plans to make its mark in the documentary and music videos fields. Aside from its own offerings, the platform has entered into a partnership with Autohome Inc., a mobile content studio, to produce documentaries and music videos. The company is in the midst of an acquisition by Tencent Music Entertainment Group, another big-name Chinese tech player.

Modest Market Capitalization

Despite its modest market capitalization of $16.2 billion, Bilibili has a track record of making money via mobile games and virtual gifts. The firm has a huge following of 130 million monthly active users. In addition, it has been able to make its way onto the NYSE and Nasdaq, and it is considering the option of a secondary listing on the Hong Kong exchange.

As it seeks to raise its game in the market, Bilibili is also considering selling a portion of its stock in the coming weeks. Although the company did not respond to an e-mail from the New York Stock Exchange, it is thought that it might be looking at the 5% to 10% range. This is in addition to the rumored IPO that could raise at least US$3.5 billion, according to industry watchers.

Final Thoughts:

However, if it is to be believed, a primary listing on the Hong Kong stock market is not in the cards for the near future. But the company might still be able to qualify for the Southbound leg of the Stock Connect scheme, which allows mainland Chinese investors to buy and sell stocks on the Hong Kong, Shanghai, and Shenzhen stock markets.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button