After 3 months of delay, Netease Music finally thinks “hum, it is a good time to go public again now” 🧐 making it the first major IPO since China’s massive crackdown on internet giants.
Again? What happened to it before?
Netease Music, who? It’s the second-largest music 🎹 streaming platform in China owned by internet giant Netease, with ~20% local market share. (Its legal name: Cloud Village… sounds a bit unrelated tho)
Netease Music originally filed for a Hong Kong IPO in May… with bad luck, as the Chinese government initiated a series of crackdowns on local internet companies and data owners.
- So it just delayed its IPO schedule to avoid being the next crackdown target. That happened just in August.
So now is a good time?
It seems so… Netease Music plans to finish its HK IPO before the year-end and has just revised its listing document with HKEx. It will raise USD 1 bln at a valuation of USD 5-6 bln – making it one of the largest tech IPOs in HK this year 🤠
- It did really well this year: Netease Music’s revenue gained more than 50% in the first 9 months this year. Yay, we all love music!
- However, it’s still deeply unprofitable after 9 years of launching. Humm, I am a bit worried.
Or perhaps it’s really a deadline fighter? Someone pointed out that their original application will expire if they don’t do it this year. 🤣