Chinese messaging group Weibo has priced its initial public offering in Hong Kong. The sale of 11 million shares, including 5.5 million ordinary shares from parent Sina and 5.5 million from the company itself, was priced at HKD 272.80 per offered unit. This translates into around USD 35 per share under the latest exchange rate, well below the recent trading price of the company's ADS listed on the Nasdaq market in the US.
The shares should start trading on the Hong Kong Stock Exchange on 8 December
Weibo expects to raise gross proceeds of over HKD 1.500 billion from its part of the offering. It will not receive any proceeds from the sale of the shares held by Sina. There will also be a greenshoe of up to 1.650 million shares in total.
The money raised will be used to grow the company's user base and engagement, and to enhance its content ecosystem in terms of user experience and monetization capabilities. The company will also pursue strategic alliances, investments and acquisitions. Any money left over will be put towards working capital and general corporate purposes.
