Baidu Wins Hong Kong Exchange Approval for Flotation
What’s new: Chinese online search engine
Baidu Inc.’s secondary listing on the Hong Kong Stock Exchange passed a hearing on the plan, according to a regulatory filing Tuesday.
Baidu expects to accept subscriptions from investors starting next week and complete the offering of as much as $5 billion within the month, the filing shows. The company chose Bank of America, CLSA and Goldman Sachs as joint sponsors.
Baidu’s Nasdaq-traded American depository shares jumped 13.6% Tuesday to $264.28.
The background: Baidu will join a string of major U.S.-listed Chinese companies making secondary offerings in Hong Kong after the U.S. threatened to kick Chinese companies that fail to meet certain auditing standards off American exchanges.