At 9:30 this morning, NetEase Cloud Music, the music streaming arm of Chinese gaming giant NetEase, was listed on the main board of the Hong Kong Stock Exchange with ticker symbol “9899”. NetEase Cloud Music raised $421 million in its IPO, with its shares priced at HK$205 each.
On Wednesday, NetEase Cloud Music was priced at HK $205 ($26) per share, the midpoint of the file price range. After this financing, it will have a market value of HK $42.59 billion.
The announcement shows that about 40% of the fundraising is intended to continue to further broaden the online music community. About 40% of the money raised is intended for innovation. Another 10% is expected to be used for mergers, acquisitions and strategic investments while the remaining 10% is intended for working capital and general enterprise purposes.
NetEase Cloud Music held a small-scale offline ceremony at its headquarter in Hangzhou, Zhejiang Province, and simultaneously held an online ceremony at NetEase Fuxi’s immersive system “Yaotai”. Three “Ding Lei (NetEase‘s founder)” were invited, including the real Ding Lei himself and other two virtual copies aged 29 and 50 respectively.
Ding Lei delivered a speech saying that this is his fourth time to participate in NetEase‘s listing ceremony. Previously, the company was listed on NASDAQ in 2000 under the ticket symbol NTES while in 2019, NetEase Youdao was listed on the NYSE with the ticket DAO. In 2020, NetEase was listed on the Hong Kong Stock Exchange for the second time.
“I’m very happy that NetEase Cloud Music on its own has broken through many apparent impossibilities,” Ding Lei emphasized. “In the future, we will continue to build a warm music community and promote the rapid development of original Chinese music.”
According to the company’s prospectus, the monthly active users of NetEase Cloud Music’s online music service increased from 105 million in 2018 to 181 million in 2020. In the first half of this year, the company’s revenue was about 3.2 billion yuan, and the adjusted net loss was 533 million yuan.