By P.R. Venkat
The online music business of Chinese internet company NetEase Inc. is planning to raise up to 3.52 billion Hong Kong dollars (US$451.9 million) in an initial public offering in Hong Kong.
Cloud Village Inc. will sell 16 million shares and has set a price range of between HK$190-HK$220 a piece, the music company said Tuesday.
The company, which operates a music-streaming platform similar to that of Spotify Technology SA's, had first filed for an IPO in the city in late May and planned to take investor orders in the first half of August. But that deal was pulled on Aug. 9 following a huge selloff in Chinese internet-technology stocks, triggered by a wave of regulatory action by Beijing against many new-economy companies.
Earlier this month, Cloud Village refiled its IPO prospectus and now expects to finalize the IPO price on Friday.
Shares are expected to start trading on the Hong Kong stock exchange Dec. 2.
The company is a smaller rival to Tencent Music Entertainment Group, a U.S.-listed subsidiary of Tencent Holdings Ltd.
Cloud Village said in its listing prospectus that 185 million users tuned in to its online music platform NetEase Cloud Music at least once a month during the first half of 2021 and that 26 million users were paying for its services monthly.
Cloud Village is expected to remain a subsidiary of NetEase after going public, according to its prospectus, which said NetEase's stake would likely go from 88% to about 62.5% post listing.
BofA Securities, CICC and Credit Suisse are among banks advising the company on the IPO.
Write to P.R. Venkat at email@example.com
(END) Dow Jones Newswires