Tech Company Baidu Expected to Raise $3 Billion in Hong Kong Listing

By McKenzie Carpenter Thursday, March 11, 2021

Chinese search engine business Baidu, which is already public on the New York Stock Exchange, or NYSE, is expected to launch a second listing on the Stock Exchange of Hong Kong, or SEHK.

Baidu headquarters in Beijing, China.

Baidu’s Secondary Listing

Today, it was revealed the tech company is projected to raise $3 billion from selling 4% of the company shares when the business launches a secondary public listing on the SEHK. The secondary listing for the tech company could happen as early as Friday.

The $87.02 billion tech business has had a successful year thus far. On the Nasdaq, shares for the business have increased 18.1% this year alone to the current price of each share, $255.14, with the peak so far on February 19 for $339.91.

Sources reported the Baidu deal has been ready to go live on the SEHK since last Tuesday but has been closely watching the Hang Seng Tech Index and waiting for tech share volatility to increase on the stock markets. The Hang Seng Tech Index fell a reported 6.4% on Monday, the largest decline since July 2020. While still remaining down 1.2% for the week, the index rose once again on Thursday to 5%.

Baidu has not commented on the plans for a secondary listing in the SEHK.

Baidu’s Future Plans

While the tech company became popular for its search engine and advertising tools, in the last year or so, the business has been looking to expand its portfolio.

In October 2020, Startup Savant reported that the tech business put a large portion of its expenses toward building an AI robo-taxi fleet. In January, Baidu partnered with Chinese automaker Geely to develop an EV. Additionally, Baidu revealed in February that it has plans to develop its own AI semiconductor business.

Other Secondary Offerings

The tech company is not the first Chinese tech company to open a secondary listing on the SEHK. There were 12 secondary listings on the SEHK from US-listed Chinese tech businesses in 2020, resulting in $19.06 billion raised.

Ecommerce company Alibaba joined the SEHK in November 2019 and was subsequently followed by other tech businesses like and NetEase. Before Baidu, the most recent secondary listing was from Bilibili, a video streaming business.

CNBC reported that the legislation signed by former President Trump in December, threatening to delist Chinese firms that do not comply with American auditing standards, has caused many Chinese tech companies to move to secondary listings closer to home.

About the Author

Headshot for author McKenzie Carpenter

McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.

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