NetEase music business Cloud Village launches $500 mln Hong Kong IPO

HONG KONG: NetEase Inc’s music streaming business Cloud Village Inc is aiming to raise up to $500 million in a Hong Kong initial public offering, according to regulatory filings, after shelving the deal earlier this year following China’s regulatory crackdown on tech companies.

The company is selling 16 million shares, which represents 7.7% of the enlarged share capital, as part of the deal launched on Tuesday.

A price range of $HK190 to $HK220 has been set for institutional investors, according to a term sheet seen by Reuters, which will give Cloud Village a market capitalisation of $5.4 billion to $6.2 billion.