The Chinese gaming company said it was issuing more than 171 million new shares at the maximum price of 126 Hong Kong dollars ($ 16.26) each, without offering discounts on the closing price of NetEase in New York, where its shares have been negotiated since 2000.
The transaction could raise around $ 2.8 billion for the company, assuming prices are at the top of the range. The final price is expected to be set on Friday. The company did not immediately respond to a request for comment regarding its minimum price for the new shares.
NetEase is expected to start trading in Hong Kong on June 11th.
The company said it intended to use the money to expand its online gaming offering in overseas markets such as Japan, the United States, Europe and Southeast Asia. It also intends to use some funds to fuel its ongoing search for innovation.
NetEase will raise billions in Hong Kong just as Chinese IPO-seeking companies on Wall Street are facing an in-depth review.
In its presentation on the Hong Kong stock exchange, NetEase cited the strengthened US regulatory environment and the potential passage of the account as potential risk factors.
“The promulgation of any of these laws … could cause investor uncertainty for the issuers concerned, including us, the market price of our [US shares] it could be adversely affected and we could be eliminated if we are unable to “meet the requirements,” said NetEase.
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