Weibo’s HK listing to raise $385 million sources

03-Dec-2021 Intellasia | Reuters | 5:02 AM Print This Post

Chinese social media firm Weibo Corp (WB.O) plans to price its shares at HK$272.8 ($35.01) each to raise $385 million in its Hong Kong secondary listing, said three sources with direct knowledge of the matter.

The sources could not be identified as the information has not yet been made public.

Weibo did not immediately respond to a request for comment.

Weibo’s US shares endured a torrid night on Wednesday as they were caught up in the broad selloff across the equities market which unfolded on fears about the Omicron coronavirus variant.

The stock closed down 9.5 percent at its lowest in almost a year.

Hong Kong’s indicative pricing was a 2.7 percent discount to Weibo’s $36 closing price in New York trading on Wednesday.

The company is selling 5.5 million primary shares and Sina Corporation is selling 5.5 million secondary shares to take the total size of the deal to 11 million shares.

The stock will start trading on the Hong Kong Stock Exchange on December 8, according to Weibo’s listing documents.

Weibo, the Chinese-equivalent of Twitter, has 566 million monthly average users, according to the listing documents lodged with the Hong Kong Stock Exchange.

Its US-listed stock has experienced a volatile year like most foreign listed Chinese stocks and is down more than 12 percent for the year.

Weibo’s current market capitalisation is $8.25 billion. In February, when Reuters reported the appointment of banks to work on the Hong Kong listing, Weibo was worth $13.2 billion.


Category: Hong Kong

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