Netease announced on the evening of June 7 on the Hong Kong stock exchange that the final offer price for both the international offering and the Hong Kong public offering has been set at HK $123.00 per share. The shares will be traded on the main board of the Hong Kong Stock Exchange under the stock code 9999 on June 11.On June 2, Netease announced the launch of its Hong Kong IPO. According to the prospectus, Netease will issue over 171 million new shares at a maximum price of HK $126 per share and raise a maximum of HK $24.49 billion.
6.18 Activities have been fully launched to promote the activity portal summary:
It is reported that investors participating in this Hong Kong offering will only be able to subscribe for common shares, but not to acquire ADSS. After the completion of the Hong Kong listing, the Hong Kong listed shares of the company and the NASDAQ listed American Depository shares will be fully convertible. Shares will be traded in 100 shares per hand.
This also means that Netease will become another domestic Internet giant listed in both US and Hong Kong stocks after Alibaba.
For the purpose of the secondary listing, Netease disclosed in the prospectus, "we believe that listing on the Hong Kong Stock Exchange will provide us with more opportunities to enter the capital market, especially the Asian capital market, and attract more extensive Asian and international investors, which can better represent our Chinese and international user base.".
Data shows that in 2017-2019, Netease's revenue was 44.44 billion yuan, 51.18 billion yuan and 59.24 billion yuan respectively, and its net profit from continuing operations was 11.54 billion yuan, 8.29 billion yuan and 13.28 billion yuan respectively.
Ronnie Ho, an analyst at CCB international, pointed out in the research paper that mobile games are the backbone of Netease, while Youdao and music play a new growth engine. In the game, Tencent's advantage lies in distribution, while Netease can take advantage of IP and go to sea to get out of its differences; on the other hand, Youdao will benefit from China's strong online education demand, and music with social attributes will accelerate monetization.
Dong Yi, an analyst at Shenwan Hongyuan, pointed out in the research report that the emerging industries have gradually become an important part of China's economy. Considering that some of the emerging industry leaders are currently listed overseas, it is expected to expand the core asset pool of the domestic market and enrich the industrial structure of the onshore market of Greater China under the tide of the return of Chinese stocks. On the other hand, the onshore investors who are more familiar with the relevant industries and businesses are also more conducive to the discovery of the company's intrinsic value, thus benefiting the overall liquidity and valuation level of the relevant companies and industries.