Hangzhou-based Cloud Village Inc, the music streaming arm of Chinese digital tech giant NetEase, announced that it will launch its initial public offering in Hong Kong on Dec 2.
The company expects to raise up to HK$3.52 billion ($453 million) by selling 16 million shares, with a price range of HK$190 to HK$220, as part of the deal launched on Nov 23. It will also offer an overallotment option to allow up to 2.4 million more shares to be sold if the demand is strong enough.
Cloud Village will start trading on the Hong Kong Stock Exchange on Dec 2, according to its prospectus. NetEase has subscribed for $200 million worth of stock as a cornerstone investor alongside Sony Music with $100 million and Orbis Investments with $50 million.
The company, which was launched eight years ago, became the second branch of NetEase to go public following Youdao, an e-dictionary affiliated with the tech giant.
Cloud Village Inc was incubated by the NetEase Hangzhou Institute and was launched in April 2013. Focusing on social networking and sharing, the music company was included in the list of global startup unicorns in 2017.
Cloud Village Inc's latest prospectus showed that the company's sales has increased rapidly, with its growth rate of paid users and online payment rate both ranking first in its sector across the country.