NetEase’s US$3 billion Hong Kong secondary listing looks like a done deal amid strong demand from investors
- NetEase has covered the book on its Hong Kong secondary listing and will close its international offer on June 4 at 4pm in all regions: sources
- JD.com and NetEase seek to raise up to US$7 billion in Hong Kong: sources
Chinese gaming giant NetEase has already amassed enough pledges from investors to cover its secondary listing in Hong Kong and could close the share offer on Thursday, according to people familiar with the matter. Investors’ take-up of the sale bodes well for e-commerce giant JD.com as it prepares to launch its offering on Monday.
NetEase and JD.com are racing to complete their secondary listings this month amid strong demand among investors for technology listings and before the US stance on Chinese companies trading on its markets hardens further.
US President Donald Trump is dialling up anti-China rhetoric ahead of seeking a second term in November, pushing more Chinese technology firms to consider a secondary-listing closer to home. Hong Kong’s exchange is putting on a full-court press to attract them.
“US-listed Chinese companies are concerned that Washington would place even more scrutiny on them if President Trump successfully wins a second term,” said Alvin Cheung, associate director at Prudential Brokerage based in Hong Kong.
JD.com is planning to raise between 4 per cent to 5 per cent of its market capitalisation ahead of a secondary listing on Hong Kong’s main board slated for June 18, according to a separate source. Based on its US market cap, that works out to about US$3.2 billion to US$4 billion.