Alibaba’s secondary listing on the Hong Kong Stock Exchange(HKEx) in November sparked off immense interest for US-listed Chinese companies to consider a secondary listing. After HKEx promulgated a series of new rules to ease the regulatory requirements for secondary listings, companies are seeing the advantages of accessing an additional capital market to fundraise for their long-term strategic growth.
On June 11th, 2020, Chinese gaming giant NetEase debuted on the HKEx under the stock code 9999.HK. Priced at HKD$123 a share, the initial public offering(IPO) was well received amid strong demand among investors for technology issues. The company raised USD$2.7 billion despite disruptions in the market caused by the ongoing Covid-19 pandemic. CICC, Credit Suisse and J.P. Morgan(listed in alphabetical order) were the joint sponsors and joint global coordinators for the offering.
NetEase, which is also listed on the NASDAQ exchange under the ticker NTES, produces some of China’s most renowned and successful online games, as well as operating various online media outlets and an e-mail service. According to the company, the proceeds from this secondary offering will go towards opportunistic globalization strategies, fueling innovation and general corporate purposes.
Toppan Merrill was appointed by NetEase to be the financial printer of this secondary offering. Previously, Toppan Merrill executed Alibaba’s secondary listing, the largest issue since 2010, during the ongoing social uncertainty at the time in Hong Kong. From confidentiality to cloud-based software solutions, we were able to facilitate our partners through a business continuity plan that allowed the deal process to proceed uninterrupted. While others were forced to temporarily closed their offices and access their services, Toppan Merrill remained open and functional to help our partners meet critical deadlines. For the NetEase secondary offering, we were able to provide mission critical services and support throughout the uncertainties presented by the Covid-19 pandemic.
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