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

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Workers flank a Baidu AI robot at the company's headquarters in Beijing. Photo: Reuters

Published: 11:20pm, 7 Jan 2021Updated: 4:43am, 8 Jan 2021

Chinese search engine giant Baidu has selected CLSA and Goldman Sachs for its planned second listing in Hong Kong, which could raise at least US$3.5 billion, 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.

Baidu joins a wave of US-listed Chinese firms in seeking a trading foothold in Hong Kong amid simmering tensions between the world’s two biggest economies. Companies from JD.com to NetEase raised about US$17 billion through share sales in the city last year, according to data compiled by Bloomberg.

The New York Stock Exchange reversed course twice on a decision to delist three Chinese telecommunications companies. Photo: Xinhua

The past week has been a whirlwind for Chinese companies trading on American exchanges. The New York Stock Exchange reversed course twice on a decision to delist three Chinese telecommunications companies, while the Trump administration is now considering barring investments in the Asian nation’s two most valuable companies: Alibaba Group Holding and Tencent Holdings.

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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

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