On June 1, NetEase filed a prospectus on Thursday, and over the weekendmedia reported that NetEase would set a ceiling of HK$126, raising up to $2.6 billion, up from an earlier estimate of $1 billion to $2 billion. Based on 100 shares per lot, NetEase’s entry fee is HK$12,727.
CICC, Credit Suisse and JPMorgan Chase are co-sponsors. In addition, NetEase has brought in nine other investment banks to assist in the underwriting of the listing, including UBS, Agricultural Bank International, CCB International, China Merchants International and Huatai Financial, a total of at least 12 investment banks will co-responsibility for underwriting.
NetEase jumped 4.55 per cent on Friday to $382.90, or HK$118.71 per share, at 1ADS-25 shares. NetEase’s total equity is currently 3,257.9 million shares, with its latest market capitalisation of $49.898 billion.
NetEase, which is listed in the Us-based Nast, plans to issue 171m shares in Hong Kong, or 5.3 per cent of the company’s issued share capital, IFR reported, citing sources. Excluding over-allocation, the value of the Hong Kong stock market is HK$20.3 billion at HK$118.71. Based on the ceiling of HK$126, the value of the Hong Kong stock market is HK$21.546 billion.