Tuesday, August 16

Weibo goes public in Hong Kong seeking 340 million euros

  • The Chinese equivalent of Twitter will offer about 11 million shares at 31 euros each

The Chinese Tech Company Weibo, which operates the Chinese equivalent of the popular Twitter microblogging network – censored in the country – seeks to obtain about 385 million dollars (or 341 million euros) with a secondary IPO in Hong Kong, where it will debut on the 8th.

In a statement sent to the Hong Kong stock market last night, Weibo notes that it will offer about 11 million shares at a price of 272.8 Hong Kong dollars (35 dollars, 31 euros) per unit. 45% of the proceeds will be used to grow the user base and “improve the content ecosystem”; 25% to research and development (R&D) to “improve user experience and monetization capabilities”; 20% to alliances, investments and acquisitions, and the remaining 10% to working capital.

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Weibo was founded in 2009 by Chinese technology company Sina, and four years later it received a significant investment from e-commerce giant Alibaba, which continues to be its “main client and an important strategic partner,” the company itself acknowledges in its investor brochure. In 2014, the company went public in New York in an operation that brought in about $ 285 million., and currently its market value stands at just under $ 7.9 billion, although at the beginning of 2018 reached over 31,000 million.

In the face of tensions between China and the United States and the increasing supervision of Beijing in the sector, several Chinese technology companies such as Baidu or Trip.com have sought IPOs in Hong Kong. The latest example of this is the ‘Chinese Uber’, Didi, which debuted on Wall Street in June and has already announced that it will withdraw from New York to offer shares in the market of the former British colony after months of tension with the authorities Chinese.

Reference-www.elperiodico.com

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