Bilibili eyes secondary listing in Hong Kong in 2021

The Bilibili booth is pictured during the 2019 Yangtze River Delta International Cultural Industries Expo at National Exhibition and Convention Center on November 21, 2019 in Shanghai, China.

Gao Yuwen | Visual China Group | Getty Images

GUANGZHOU, China — Chinese video platform Bilibili is gearing up for a secondary listing in Hong Kong which could raise up to $1.5 billion, CNBC has confirmed.

Bilibili is currently listed on the Nasdaq in the U.S. The Hong Kong secondary listing is likely to happen next year, a person familiar with the matter told CNBC.

The video platform, which is popular with Chinese millennials, could raise between $1 billion and $1.5 billion, the person said.

The Nikkei Asian Review first reported the news.

Bilibili’s secondary listing would make it the latest in a long line of U.S.-listed Chinese firms to raise money in Hong Kong. Alibaba, JD.com and NetEase are among the high-profile names that have carried out secondary listings in Hong Kong in the past few months. 

Rising geopolitical tensions between the U.S. and China have threatened to spill over to Chinese firms listed on Wall Street. Lawmakers in Washington are pushing for greater scrutiny of Chinese companies through proposed legislation that threatens to delist some firms in the U.S. 

Bilibili went public on the Nasdaq in 2018 at $11.50 per American depositary share (ADS), raising $483 million. On Thursday, Bilibili shares closed at $46.60 a piece. This year alone, the company’s shares have risen over 150%. 

The video platform is aimed at China’s younger generations and the company makes money in a number of ways. Mobile games is its largest revenue driver. It also hosts live broadcasts during which users can buy virtual items. Bilibili also makes money from advertising.

Second quarter revenue came in at 2.6 billion yuan ($370.5 million), a 70% year-on-year increase. Bilibili has 171.6 million average monthly active users. 

Rather than Netflix-style shows, Bilibili relies on user-generated content, similar to YouTube. 

Bilibili has been focusing on growing its user base this year by boosting its content offerings. In August, the company signed a deal with Riot Games, the owner of League of Legends, to broadcast their global events in China.