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Stock Market
28 Nov 2021
NetEase’s Cloud Village Raises $422 Million in Hong Kong IPO
The Index Today
NetEase Inc’s music streaming arm, Cloud Village raised $422 million at its Hong Kong initial public offering with shares priced at the mid-point marketing range.
The company sold shares for HK$26.30 a piece with 16 million shares being marketed for HK$190 to hk$220 apiece. The trading for shares is expected to begin on the 2nd of December. Cloud Village reinstated plans for its IPO after the listing was halted earlier this year. Bloomberg reported that the company was seeking an IPO of $1 billion.
The recent scrutiny by China along with tightening of data control policies means all IPOs in Hong Kong will undergo a cycbersecurity review. This review will determine is the data will have any effect on national security. Cloud Village is NetEase’s main music streaming unit in China and bring most of its revenue from subscriptions and advertising.
The music company was established in 2013 and has become a diverse platform offering all kinds of services such as online karaoke, live-streaming, and lyrics sharing. The company has grown to 185 million users and has revenue increases of 61%. However, Cloud Village still faces strict rival competition from Tencent Music Entertainment Group.
©Photo: wsj
