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China's Baidu to sell around 4 per cent of shares in Hong Kong listing
Reuters
Last Updated IST
Logo of Baidu. Credit: Reuters File Photo
Logo of Baidu. Credit: Reuters File Photo

Chinese search engine giant Baidu Inc will launch its Hong Kong secondary listing on Friday and will sell around 4 per cent of its shares, which at current price will raise at least $3 billion, two sources with direct knowledge of the matter told Reuters.

The sources could not be named as the information has not yet been made public. Baidu declined to comment on the launch.

Baidu shares, listed on the Nasdaq have risen 18.1 per cent so far this year to the current price of $255.14. The peak in 2021 was $339.91 on February 19.

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The deal has been ready to launch since at least Tuesday but the New York-listed Baidu has waited for volatility in stock markets to ease, especially in tech shares, before going ahead with it, one of the sources added.

Baidu did not immediately respond to a request for comment on the deal being ready earlier this week.

Advisors have been closely watching the Hang Seng Tech Index, which fell 6.4 per cent on Monday, its largest daily decline since July 16 last year, according to Refinitiv data.

The index rose more than 5 per cent on Thursday but remains down 1.2 per cent for the week as sentiment towards the city's tech stocks stabilise.

Baidu's move is the latest in a steady march of US-listed Chinese companies which have carried out deals in the past year to list in Hong Kong.

There were 12 secondary listings in 2020 which raised $19.06 billion, according to Refinitiv data.

The trend was started by Alibaba in 2019, when it sold $12.9 billion worth of shares in Hong Kong as it looked to diversify away from its sole New York listing

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(Published 11 March 2021, 15:41 IST)