Chinese messaging group Weibo has filed papers for an initial public offering in Hong Kong, amid continuing tensions with the US. The group, which has been listed on the Nasdaq since 2014, is planning to sell 11 million shares for up to HKD 388 or USD 49.80 per unit, for a total of USD 547 million at the maximum subscription price. The shares should start trading in Hong Kong on 8 December.
Weibo said in the filing that it had 566 million active users as of June. The company will put the money raised by the IPO towards growing its user base, and for research and development. It will also use the cash to pursue strategic alliances and for investments and acquisitions.
Listing in Hong Kong is seen as a hedge against the risk of being removed from US exchanges and a way of accessing an investor base closer to their home markets, the Bangkok Post noted. China also has been encouraging its big tech players to list either in Hong Kong or Shanghai. Weibo cautioned that it is "subject to changing laws and regulations regarding regulatory matters, corporate governance and public disclosure" that have increased both its costs and risks of non-compliance. Its American depositary shares will cotinued to be listed on the Nasdaq.
