IPO Pricing | Weibo-SW was subscribed 2.67 times, priced at HK$272.8 per share

Futu News, December 7, this Tuesday$WB-SW (09898.HK)$An announcement was issued. The company will issue 11 million shares, priced at HK$272.8 per share, with 20 shares per lot. It is expected to be listed on December 8.

According to Monday$Weibo (WB.US)$Calculating the closing price of US stocks at $31.98, the equivalent price of Hong Kong stocks was about HK$249.5, which is 8.55% off the price of Hong Kong stocks of HK$272.8.

During the public sale phase, Weibo was subscribed about 2.67 times, and the final number of shares offered up to the public sale was 1.1 million shares, accounting for 10% of the total number of shares offered (before any over-allotment rights were exercised). A total of 11,189 valid applications were received, with a winning rate of 47.24% for the first round, and the third round of subscription was successful.

Furthermore, the international offering was oversubscribed, and the final number of shares offered was 9.9 million shares, equivalent to 90% of the total number of shares offered (before any overallotment rights were exercised). Futu Information collates the relevant data in the following table:

The net proceeds of approximately HK$1,383 billion will be used for the following purposes: approximately 45% to continuously expand the user base and enhance user engagement, and improve the content ecosystem; approximately 25% for R&D to enhance user experience and monetization capabilities; approximately 20% to selectively seek strategic alliances, investments and acquisitions; and approximately 10% for working capital and general corporate purposes.

Weibo is a leading social media platform in China for people to create, discover, and distribute content. The company was listed on the US NASDAQ in April 2014, and the stock code is “WB”.

Weibo has built up a huge user base in China and the Chinese community in more than 190 countries around the world. In June 2021, Weibo had 566 million monthly active users, with an average of 246 million daily active users. According to the Insights Advisory Report, based on monthly active users and daily active users in June 2021, Weibo is one of the top ten mobile apps in China and one of the top three social media platforms in China.

Sina and Ali are the most important shareholders of Weibo. Among them, Sina holds 44.4% of the company's shares and Ali holds 29.6% of the company's shares (disclosed on September 30, 2021).

In terms of financial data, Weibo began monetizing mainly through the sale of advertising and marketing services in 2012, and to a lesser extent through value-added services (mainly VIP membership, live streaming, and game-related services).

From 2018 to 2020, the company's total revenue was US$1,719 million, US$1,767 million and US$1,690 million respectively, and recorded operating profits of US$609 million, US$598 million and US$507 million during the same period.

In the first three quarters of 2021, the company recorded revenue of US$1,641 million and operating profit of US$515 million, a significant increase over the same period last year.

On the industry side, advertising revenue generated by social media platforms increased from RMB 8.3 billion in 2016 to RMB 138.6 billion in 2020, with a compound annual growth rate of 102.2%, and is expected to further increase to RMB 480.7 billion in 2025 at a compound annual growth rate of 28.2% between 2020 and 2025.

Northern/Aurora

53K Views