The US-listed Chinese microblogging platform Weibo is seeking to raise up to $ 547 million in a Hong Kong stock offering, documents showed Monday, China’s latest tech company. to be listed closer to home as tensions with the United States increase.
Several Chinese technology companies listed in the United States, such as Alibaba, have made IPOs in Hong Kong over the past two years, as the United States has stepped up its surveillance of Chinese companies.
Listing in Hong Kong is seen as a hedge against the risk of being pulled from US stock exchanges and a way to access an investor base closer to their home markets.
China has also encouraged its big tech players to register in Hong Kong or Shanghai.
On Monday, Nasdaq-listed company Weibo – China’s response to Twitter – said in a filing that it plans to sell 11 million shares for up to HK $ 388 ($ 49.75) each.
The shares are expected to start trading on December 8.
Weibo, which launched in 2009 and is among the top social media platforms in China, had 566 million monthly active users in June, he said in a filing.
Its shares have been listed on the Nasdaq since 2014.
Weibo is one of the most widely used social media platforms in China, where authorities have blocked major international players such as Facebook.
Weibo said it plans to use the funds raised on its Hong Kong list to grow its user base and for research and development.
But he warned that it is “subject to changing laws and regulations regarding regulatory matters, corporate governance and public disclosure” which have increased both its costs and the risks of non-compliance.
In recent months, Chinese regulators have launched a sweeping crackdown on tech companies like Alibaba, Tencent and Meituan – cutting off the wings of big internet companies that exert a strong influence on the daily lives of consumers.
bys / dma / mtp