Baidu Targets $3.1B Hong Kong Offering, Set For March 23 Trading: Bloomberg

Baidu Inc BIDU is set to raise about $3.1 billion (HK$23.9 billion) from 95 million Hong Kong share sales, Bloomberg reports.

  • Baidu waited for the relaxation in tech share volatility to join a bevy of U.S.-listed Chinese companies getting listed in Hong Kong, led by Alibaba Group Holding Ltd BABAAutohome Inc ATHM. Other potential listers include Tencent Music Entertainment Group TME and Bilibili Inc BILI.
  • The company intended to price the offering at HK$252 per share, representing a 2.7% discount to the Tuesday closing price of $266.78. One American depositary share was equivalent to eight ordinary shares being listed in Hong Kong.
  • The retail tranche of the deal, which was worth 5% of the total share sale, was oversubscribed about 100 times. At that rate, 12% of the deal would be sold to those retail investors under Hong Kong’s clawback rules. Online broker Futu recorded 90,000 subscriptions from investors to borrow HK$14.7 billion in margin loans.
  • Baidu’s listing was touted as the biggest homecoming of a U.S.-traded Chinese company in Hong Kong at HK$23.9 billion, since NetEase Inc’s NTES HK$24.3 billion June 2020 offering. The trade war further fueled such expansion sprees by the U.S. listed Chinese technology companies driving the listing volumes for Hong Kong’s bourse.
  • Bank of America, CLSA, and Goldman Sachs are joint sponsors of the offering, with China International Capital Corp., UBS Group, and CCB International Holdings as joint global coordinators.
  • Baidu’s shares are estimated to start trading in Hong Kong on March 23.
  • Price action: BIDU shares traded lower by 2.77% at $259.4 in the premarket session on the last check Wednesday.

Posted In: BloombergHong KongNewsIPOsTechMedia

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.