Chinese social media website Weibo and its shareholder Sina Corp, sold shares in its second Hong Kong listing at HK$272.80 each ($35.01), raising about $385 million, reports Bloomberg. The price represents a 2.8% discount on Wednesday’s $36 close in New York.
The Chinese company sold 5.5 million new shares in the Hong Kong offering, while Sina sold 5.5 million existing shares. The sellers set a maximum price of HK$388 ($49.80) for the portion of the deal being marketed to Hong Kong’s retail investors.
Weibo’s Hong Kong listing comes as Chinese regulators continue their relentless tightening of oversight on local firms traded overseas. China will issue new draft rules as soon as this month restricting the use of so-called variable interest entities, Bloomberg News reported Wednesday. The rules would ban VIEs’ use in new listings aside from in Hong Kong, and would require more transparency from firms that already use the structure.
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