CICC Assists NetEase, Inc. in Listing on the Main Board of HKEx
NetEase, Inc. (“NetEase” or “Company”, NTES.US/9999.HK) has successfully completed its dual listing on the main board of HKEx on June 11th, 2020. The offering size is US$3.1 billion (assuming full exercise of over-allotment option). CICC acted as the Joint Sponsor, Joint Global Coordinator and Joint Bookrunner.
This offering is the largest IPO globally in overseas markets in 2020 YTD, and the second secondary listing after Alibaba since the introduction of Listing Rule Chapter 19C, CICC is greatly honored to sponsor both of the only two secondary listings by far.
As a leading internet technology company based in China, NetEase, Inc. was listed on Nasdaq on June 30, 2000 and has won its market recognition from global investors through its compliance track record and significant growth. NetEase aspires to create wonders through delivering premium content and excellent service to users, and the mission has guided NetEase through the past 23 years since its founding, in delivering premium content and services. NetEase has a successful online game business, and also incubated and developed in-house a pipeline of innovative and successful businesses, including intelligent learning and other businesses, ranging from NetEase Cloud Music and Yanxuan to internet media, e-mail services and others.
Acting as the Joint Sponsor and JGC of this offering, CICC led the overall coordination and marketing workstream, and successfully assisted Company listed in Hong Kong, fulfilling its goal of accessing incremental demand from Asia market, and further expanding / diversifying its shareholders base.
As a public company in the US, NetEase attracted enormous attention from market and media, there have been many speculations about Company after Alibaba went listed in Hong Kong last year. Since the kick-off, deal team enforced strict confidentiality and successfully minimized the market exposure. CICC led the overall execution process throughout the project proactively and efficiently in a short time, overcoming various difficulties such as travel restriction due to COVID-19, completed the offering with great efficiency while delivering satisfactory results and ensuring a smooth progression.
At the early stage of the deal, stock markets were highly volatile due to the macroeconomic impact of COVID-19 together with the trade tensions, China ADRs were also performing under pressure. CICC assisted Company in achieving key execution milestones and efficiently went through the vetting process to minimize market exposure, which reflected CICC’s capability of market window selection.
CICC has won extensive recognition from the client for successfully served NetEase once again with its listing in Hong Kong, subsequent to assisting the leading technology company with Youdao’s IPO in the US in 2019. It is a classic case of CICC's long-term international professional service to domestic leading new economy enterprises, it is also the second deal sponsored by CICC in succession under Listing Rule Chapter 19C.
As a leading investment bank with “Chinese Roots, International Reach”, CICC will continue to utilize its capital market expertise as well as its seamless cooperation of onshore and offshore businesses to provide customized and top-notch capital market support to our customers, and assists in promoting long-term strategic development.