Recently, two US-listed Chinese corporations with combined market capitalizations of $130 Billion, Baidu (NASDAQ: BIDU) and Bilibili Inc (NASDAQ: BILI) announced that they will be doing a secondary offering on the Hong Kong stock exchange.
Baidu is a tech company specializing in AI and Internet-related services. It is planning to list 24 million shares to raise approximately $3 billion. The price is expected to be a 2.7% discount to the US-listed stock.
Chinese video-platform Bilibil will list on March 29th and is aiming to raise $2.8 billion in proceeds from the sale of Class Z shares.
Baidu and Bilibill are following in the footsteps of Alibaba (NYSE: BABA), JD.com (NASDAQ: JD), and NetEase (NASDAQ: NTES) which have done secondary offerings in the world’s 4th largest stock exchange by aggregate market cap, Hong Kong.
More are expected to follow amid potential escalation of US-China trade war and risk of de-listings.