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Bilibili priced Hong Kong listing at HK$808 a share as ‘China’s YouTube’ hit by tech valuations fears

  • The Chinese streaming platform raised US$2.6 billion from the stock sale, below its initial target of US$2.8 billion
  • Investors quiz management about growth targets and competition over content creators

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Cosplayers perform at the video platform Bilibili stand during the 2020 China Digital Entertainment Expo & Conference (ChinaJoy) at Shanghai New International Expo Center on July 31. The company is pinning its hopes on consumers’ love affair with videos continuing. Photo: Getty Images
Alison Tudor-AckroydandChad Bray

Video-streaming and mobile gaming site Bilibili priced its share sale on Hong Kong’s stock exchange at HK$808 each on Tuesday, becoming the latest Chinese technology giant to float its shares in the city.

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Nasdaq-traded Bilibili raised about HK$20.2 billion (US$2.6 billion) from investors, slightly below its US$2.8 billion target flagged at the launch of marketing for its second listing on March 17, according to a term sheet seen by the South China Morning Post.
Blame that on timing. Sentiment has gradually soured on the flood of US-listed Chinese companies seeking new listings in Hong Kong, as relations between the two superpowers fray. Investors are increasingly twitchy about technology companies’ sky-high valuations, especially for unprofitable firms such as Bilibili. The Hang Seng Tech Index has dropped 22 per cent from its February 17 high.

Investors have quizzed management during the share sale on how they could hit a target of 400 million monthly average users (MAU) by 2023, as well as on ways the company will make money and how it can defend itself from competitors trying to poach content creators. A spokeswoman for Bilibili declined to comment on the pricing.

Bilibili is pinning its hopes on consumers’ love affair with videos continuing. Consultancy iResearch predicts that the video-based industry will generate 1.8 trillion yuan (US$276.4 billion) in revenues by 2025, up from 583 billion yuan in 2019. This explosive growth is being spurred by China’s expanding 5G network, a smorgasbord of content from a swelling host of content creators, paid for by loyal users with ever deeper pockets as China’s economy grows.

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