Chinese tech giant raises $ 3.1 billion

The Baidu Inc. logo will be displayed at the company’s headquarters in Beijing, China on July 3, 2019.

Wan Xiaojun | Visual China Group via Getty Images

GUANGZHOU, China – Chinese search giant Baidu will raise nearly $ 3.1 billion in its upcoming Hong Kong secondary listing, a person familiar with the matter told CNBC.

Baidu has valued its shares at Hong Kong $ 252 ($ 32.45), the person said.

The tech giant previously announced plans to issue 95 million Class A common shares. At $ 252 Hong Kong per share, Baidu will raise approximately Hong Kong $ 23.94 billion ($ 3.08 billion).

In a filing for approval last week, Baidu said it would not value its shares above $ 295 Hong Kong.

The shares will trade in Hong Kong on March 23, the source said.

Baidu declined to comment on the deal’s pricing and schedule.

One US depository share is worth 8 Class A common shares issued in Hong Kong. This means that the price of $ 252 Hong Kong represents a discount of around 2.7% on the closing price of US-listed Baidu shares on Tuesday.

Baidu joins a long list of US-listed Chinese technology companies that have made secondary offers in Hong Kong, including Alibaba, and NetEase. CNBC reported in January that Chinese video streaming company Bilibili has also applied for a secondary listing in Hong Kong.

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