Bilibili plans to boost over $ 2 billion on the Hong Kong secondary itemizing

The Bilibili booth is pictured during Yangtze River Delta International Cultural Industry Exhibition 2019 at the National Exhibition and Convention Center on November 21, 2019 in Shanghai, China.

Gao Yuwen | Visual China Group | Getty Images

GUANGZHOU, China – Chinese video platform Bilibili is preparing for a secondary listing in Hong Kong that could raise more than $ 2 billion, more than expected last year, a factual source told CNBC.

Bilibili, which is currently listed on the Nasdaq, is expected to file an application for the Hong Kong public offering later this week or early next week, the source said. The submission does not contain any price information. These are expected within the next two months, the person said.

Last year, CNBC reported that the service, popular with Chinese millennials, could fetch between $ 1 billion and $ 1.5 billion. However, in the past 12 months, Nasdaq-listed stocks have surged over 300% – a factor that helped Bilibili increase the amount of money it plans to raise in Hong Kong, the source said.

Bilibili wasn’t immediately available for comment when CNBC contacted him.

A number of US-listed Chinese companies, including Alibaba, JD.com and NetEase, have come to Hong Kong in the past 14 months for secondary listings.

Persistent tensions between the US and China have threatened Chinese companies on Wall Street. In December, President Donald Trump signed a bill threatening to delist companies that fail to meet American auditing standards.

This could be a reason for the rise in secondary listings in Hong Kong.

Bilibili went public on the Nasdaq in 2018 at a price of $ 11.50 per American Depositary Share (ADS) and raised $ 483 million. The stock closed at $ 94.74 apiece on Monday, an increase of more than 700% since going public.

The video platform is aimed at China’s younger generations and mobile games are the biggest sales driver. Bilibili also hosts live broadcasts where users can purchase virtual items. It also makes money from advertising.

Revenue for the third quarter of 2020 was 3.22 billion yuan, or $ 475.1 million, according to the exchange rate of the official earnings release. That was 74% growth over the previous year.

Instead of Netflix-style shows, Bilibili relies on user-generated content, similar to YouTube.

Bilibili has focused this year on expanding its user base by expanding its content offering. In August, the company signed a deal with video game developer Riot Games, owner of League of Legends, to broadcast its global events in China.

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