Baidu picks CLSA, Goldman for a Hong Kong secondary listing that may raise at least US$3.5 billion, sources say
- Baidu could sell up to 9 per cent of its share capital, raising at least US$3.5 billion, based on a market value of almost US$70 billion
- More banks could be added and details of the offering including timing and size are subject to change, according to people familiar with the matter
Nasdaq-listed Baidu plans to sell shares in the Asian financial hub as soon as the first half of this year, the people said, asking not to be identified as the information isn’t public. The company could sell about 5 per cent to 9 per cent of its share capital, meaning the offering could raise at least US$3.5 billion based on its latest market value of almost US$70 billion.
More banks could be added and details of the offering including timing and size are subject to change, the people said. Representatives for CLSA and Goldman Sachs declined to comment, while a representative for Baidu had no immediate comment.
While questions remain on how the incoming Biden administration will deal with China, a second listing in Hong Kong allows Chinese firms to expand their investor base and acts as a hedge against potential delisting. President Donald Trump has already signed legislation that could kick firms off US exchanges unless American regulators can review their financial audits, an issue that has remained unresolved between China and the US for over a decade.
Baidu has been seeking to catch up in the heated area of online entertainment, with its core search app morphing into a platform hosting a wide array of content from articles to videos. Late last year, it agreed to buy Joyy’s live-streaming business for China for about US$3.6 billion and its Netflix-style iQiyi competes with services run by Tencent and Alibaba.