NetEase restarts Hong Kong IPO of music streaming business Cloud Village

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HONG KONG, Nov 16 (Businesshala) – NetEase Inc. has restarted the Hong Kong initial public offering (IPO) of its music streaming business Cloud Village, the company’s filings showed on Tuesday, a deal two sources said is nearly The goal is to raise $500 million by the end of the year.

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Flotation was postponed in August as global financial markets reacted to the extent of Chinese regulatory tightening following Didi Global Inc’s IPO in the US.

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NetEase blamed volatile trade in China’s major tech companies for wreaking havoc on investors’ appetite for the deal at the time, sources said.

Cloud Village Inc. resumed the process of listing on the Hong Kong Stock Exchange in a fresh filing on Tuesday, without specifying the size or timetable of the deal.

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Sources at the time said NetEase planned to raise $1 billion in the August transaction. Two sources with direct knowledge of the matter said it now hopes to raise about $500 million, although the final figure has yet to be determined.

Two sources said the company is expected to list before the end of 2021 depending on market conditions. He declined to be named as the information has not yet been made public.

NetEase did not immediately respond to a request for comment from Businesshala.

Cloud Village is considered the closest competitor to Tencent’s popular music streaming service, which dominates the mainland Chinese market.

Alibaba Group Holdings, Baidu Inc., General Atlantic and Boyu Capital are Cloud Village investors, according to the firm’s listing documents.

NetEase’s US listed stock has traded up 16% so far in 2021. (Reporting by Scott Murdoch; Editing by Jan Harvey)

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