China’s Baidu to raise $3.1 billion from Hong Kong listing: sources

China’s Baidu to raise $3.1 billion from Hong Kong listing: sources

News: China’s Baidu to raise $3.1 billion from Hong Kong listing: sources.

HONG KONG (Reuters) – Chinese internet search engine giant Baidu Inc is said to raise $ 3.08 billion by valuation of its shares on its secondary listing in Hong Kong at HKD 252 ($ 32.45) each. This comes from two sources with direct knowledge of the matter.

Baidu, a company listed on the New York Stock Exchange, is selling 95 million shares in the transaction.

The people could not be named because the information has not yet been published.

Baidu declined to comment on the pricing of the deal.

Baidu had previously stated in its listing documents that the shares would not price more than HK $ 295 ($ 38.02) each and would represent 3.4% of their total shares for retail investors.

The price of HK $ 252 is a 2.7% discount on Baidu’s closing price of $ 266.78 in New York on Tuesday, when American Depository Shares rose 0.47%. Baidu’s New York stocks are up 23.37% so far this year.

One Baidu ADS corresponds to eight of its Hong Kong shares, as stated in the listing documents.

The shares will be traded on the Hong Kong Market on March 23rd.

Baidu is the youngest Chinese company to be listed in the US and has been doing what is known as a homecoming listing since the Alibaba Group started the trend in November 2019.

In 2020, Hong Kong had 12 secondary listings that raised $ 19.06 billion.

Dealmakers say the pipeline of future secondary listings remains strong in 2021 as U.S.-listed Chinese companies await guidance on whether President Joe Biden will stick with the plans outlined by his predecessor Donald Trump to get them off the U.S. exchanges if they do not meet certain conditions.

($ 1 = 7.7659 Hong Kong dollars)

Reporting by Scott Murdoch in Hong Kong; Adaptation by Tom Hogue and Muralikumar Anantharaman

Original Source © Reuters

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