© Reuters. FILE PHOTO: Signage for Weibo Company is seen on the NASDAQ MarketSite in Occasions Sq. on day one in every of its preliminary public providing (IPO) on The NASDAQ Inventory Market in New York

By Julie Zhu and Scott Murdoch

HONG KONG (Reuters) – Chinese language social media platform Weibo (NASDAQ:) Corp has appointed Goldman Sachs (NYSE:), Credit score Suisse (SIX:) and CLSA to work on its deliberate Hong Kong secondary itemizing within the last half of 2021, two sources with direct information of the matter mentioned.

The itemizing by China’s largest microblogging platform may increase as much as $700 million, a kind of folks mentioned, as the corporate joined a wave of Hong Kong share gross sales by U.S.-listed Chinese language corporations.

The Nasdaq-listed firm, which has a market capitalisation of $13.2 billion and is backed by tech big Alibaba (NYSE:), is contemplating promoting about 5% of its enlarged share capital in Hong Kong to broaden the investor base, one of many sources mentioned.

They requested not be named as a result of the data has not been made public.

Weibo didn’t instantly reply to a request for remark and Goldman Sachs, Credit score Suisse and CLSA declined to remark.

A Hong Kong itemizing provides Weibo to the Chinese language corporations whose shares are buying and selling in New York which are looking for to return to exchanges nearer to dwelling in opposition to the backdrop of political pressure between the US and China.

Refinitiv knowledge reveals $34 billion in secondary listings in Hong Kong since Alibaba’s $12.9 billion float in late 2019. Final 12 months, e-tailer JD (NASDAQ:).com raised $4.5 billion and video games developer NetEase (NASDAQ:) Inc raised $3.1 billion.

Different Chinese language corporations planning such listings embody widespread video website Bilibili (NASDAQ:), search engine big Baidu Inc (NASDAQ:) and on-line journey main Ctrip.

Weibo, which went public in 2014, has seen its shares acquire 42% up to now this 12 months, outperforming the Nasdaq Golden Dragon China Index, which tracks Chinese language companies listed on the U.S. trade and has superior 26% over the identical interval.

The Beijing-based firm reported $417 million in promoting and advertising revenues, its core supply of revenue, within the third quarter, flat year-on-year, following fierce competitors from rivals, comparable to Bytedance, which runs widespread brief video app Douyin and on-line video agency Kuaishou.

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