NetEase’s launches $500 million Hong Kong IPO for its music business
Cloud Village, the music streaming arm of NetEase runs the NetEase Cloud Music app which is displayed on a smartphone in this photo.
Fan Jianlei | Visual China Group | Getty Images
GUANGZHOU, China — NetEase has launched the Hong Kong initial public offering (IPO) of its music business Cloud Village which could raise around $500 million.
Cloud Village will offer 16 million shares at a price between 190 Hong Kong dollars and 220 Hong Kong dollars. The final price has not yet been set.
There is an option to issue a further 2.4 million shares as part of an over-allotment option.
At the upper end of the range, Cloud Village would raise around 4.04 billion Hong Kong dollars ($519.6 million), not excluding fees and other expenses related to the IPO.
Cloud Village runs NetEase’s music streaming business and the company says it has 185 million monthly active users. Its revenue rose 51.5% year-on-year to 5.1 billion yuan ($799.6 million) for the…
