For years, Chinese video-streaming giant bilibili has been a giant in the industry with millions of users tuning in every day. Now, the company is set to take their business to the next level by planning an IPO on the New York Stock Exchange. The offering will be a testament to bilibili’s success, and it’s no surprise that there’s so much hype around it. In this blog post, we’ll take a look at why bilibili is poised for success and what investors should consider before investing in their upcoming IPO.
What is bilibili?
bilibili is a Chinese online video platform similar to YouTube where users can upload, watch, and share videos. The site is especially popular among anime and gaming fans in China. bilibili was founded in 2009 by Xu Yi and Chen Rui.
What is an IPO?
An initial public offering (IPO) is the first sale of stock by a company to the public. Prior to an IPO, a company is considered private, meaning that its stock is not publicly traded on any stock exchange. Once a company goes public, anyone can purchase its stock.
IPOs are often underwritten by investment banks, which means that the investment bank agrees to buy all of the shares being offered by the company and then sell them to investors. This process provides some stability for the company as it goes public because it knows that it will be able to sell all of its shares.
Underwriting an IPO is a risk for investment banks because they may end up holding unsold shares if there is not enough demand from investors. For this reason, investment banks typically only underwrite IPOs for companies that they believe will be successful.
IPOs can be a great way for companies to raise capital and for investors to get in on the ground floor of a potentially successful business. However, IPOs are also risky because there is no guarantee that a company will be successful after going public.
What are the benefits of bilibili going public?
When a company goes public, it means that the company’s stock is now available for trade on a public stock exchange. This can bring a number of benefits to the company, including:
1. Increased visibility and name recognition: When a company goes public, its name is now more likely to appear in the news and be recognized by potential customers and investors.
2. Access to capital: Going public can give a company access to new sources of capital, which can be used to finance expansion, research and development, or other strategic initiatives.
3. Improved liquidity: Going public usually results in increased liquidity for the company’s stock, making it easier for shareholders to buy and sell shares.
4. Greater employee motivation: Publicly traded companies often have greater employee motivation, as employees may now have the opportunity to participate in the company’s success through stock options or other equity-based compensation plans.
5. Enhanced corporate governance: Being a publicly traded company typically requires enhanced corporate governance practices, which can improve overall management and decision-making at the company.
What are the risks associated with bilibili’s IPO?
Bilibili, Inc. (Nasdaq: BL), a leading online entertainment platform for young generations in China, today announced the pricing of its initial public offering of 18,000,000 American depositary shares (“ADSs”), at a price to the public of $11.50 per ADS. The ADSs are expected to begin trading on the Nasdaq Global Select Market on March 28, 2018 under the ticker symbol “BL.” Each ADS represents one Class Z ordinary share of Bilibili.
The gross proceeds from the offering are expected to be approximately $206.0 million, before deducting underwriting discounts and commissions and other estimated offering expenses payable by Bilibili. Bilibili has granted the underwriters a 30-day option to purchase up to an additional 2,700,000 ADSs at the initial public offering price to cover over-allotments, if any.
Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc. are acting as joint bookrunners for the proposed offering. BofA Merrill Lynch and China Renaissance Securities (US) Inc., are also acting as bookrunners for the proposed offering.Needham & Company, LLC is acting as lead manager for the proposed offering.
How will this impact the Chinese market?
The Chinese market is the world’s largest and most populous, making up over a fifth of the global economy. As such, any major financial event like an IPO is likely to have wide-reaching effects.
Bilibili is one of China’s leading video streaming platforms and its impending IPO has been hotly anticipated. The company has been expanding rapidly in recent years and its listing on a US exchange will give it greater visibility and access to international investors.
This move will have significant implications for the Chinese stock market and could trigger a wave of other IPOs from Chinese tech companies. It will also be closely watched by foreign investors who are eager to get a piece of the growing Chinese economy.
Conclusion
The Bilibili IPO is a groundbreaking event as it marks the first US listing of a Chinese media company. It also highlights the potential of international markets and how companies can access them in order to maximize their growth prospects. Investors should take note that while there are risks associated with investing in an overseas company, this particular IPO has been highly successful and could provide lucrative returns in the future. With proper research and due diligence, investors may find that this opportunity presents itself with great reward potential for those willing to take on risk.
