NetEase, an internet company from China engaged in gaming, education, and music streaming, has also been listed on the Nasdaq since 2000.
On their debut in Hong Kong, NetEase shares, priced at 123 Hong Kong dollars or $15.87 each, soared to 133 Hong Kong dollars or $17.16, soon after the markets opened.
NetEase’s listing occurs at a time of rising tensions between the U.S. and China, and some companies returning to Hong Kong. bc
NetEase told CNBC that it would use the money raised for “globalization strategies and opportunities" as well as for general corporate purposes.
Why It Matters
NetEase has raised a total of $2.72 billion by offering 171,480,000 new ordinary shares in the Hong Kong market, reported CNBC.
The firm is looking to bolster its education and music streaming products and is following its rival Tencent Holdings Ltd (OTC: TCEHY) in a bid to expand its global footprint by investing in gaming companies.
NetEase said that 25 ordinary shares are worth one Nasdaq-listed American depositary share, meaning each 123 Hong Kong dollar offer price is equal to $397 per ADS.
As tensions between the U.S. and China, some Chinese companies are delaying their U.S. listings.
NetEase Price Action
On Thursday, NetEase shares traded 7.14% higher at $131.40 at press time in Hong Kong. The company’s shares traded 3.77% higher at $424.98 on Wednesday and declined 0.47% to $423 in the after-hours trading.
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