News

Chinese tech giant Baidu could raise $ 3.6 billion in Hong Kong this month

chinese-tech-giant-baidu-could-raise-3-6-billion-in-hong-kong-this-month

Robin Li, General Manager of Baidu.

Nelson Ching | Bloomberg | Getty Images

GUANGZHOU, China – Baidu will raise $ 3.6 billion in an upcoming Hong Kong secondary listing if stocks are valued at the high end of their range.

On Thursday, the Nasdaq-listed Chinese technology giant published its prospectus for the Hong Kong listing. Baidu will issue 95,000,000 Class A common shares at a price not exceeding 295 Hong Kong dollars or US $ 38.05.

At that upper end, Baidu’s net proceeds from the offering will be Hong Kong dollars 27.6 billion, or $ 3.6 billion.

The banks that subscribe to the listing also have the option to purchase up to 14,250,000 additional shares. That would bring the net proceeds from the deal to Hong Kong $ 31.8 billion, or $ 4.1 billion.

The final price for the shares will be determined in part by the price of the US-listed Baidu shares on the last trading day prior to the price of the global offering, which is expected to take place on or about March 17, the company said.

Earlier in the day, CNBC reported that Baidu will raise at least $ 3 billion, citing two people familiar with the matter. The listing will be completed before the end of the month, they said. Baidu declined to comment when contacted by CNBC.

Diversification plans

Baidu could also benefit from a huge 128% surge in its shares over the past 12 months to raise capital.

While Baidu is traditionally known for its search and advertising business, more recently it has looked to diversify.

The company has focused on its autonomous auto business and is creating independent companies. CNBC reported in February that Baidu plans to raise money for an artificial intelligence semiconductor company.

Baidu has also built an independent electric vehicle business with automaker Geely and is raising money for a biotechnology company.

The company said it will use the proceeds from the Hong Kong listing to invest in technology and commercialize its artificial intelligence products, improve monetization and diversify, and for general corporate purposes.

0 Comments
Share

Katherine Clark