The Sino-Singapore Jingwei client officially listed on the Hong Kong Stock Exchange today (11th) and opened 8.13% higher at 133 Hong Kong dollars with an issue price of 123 Hong Kong dollars. The pre-bid price rose by more than 8%.

  Wind screenshot

  On the 10th, NetEase issued an announcement that the public sale was about 360.53 times oversubscribed. The signing rate of the company is only about 8%. It is planned to issue 17148 million shares globally, including 20.58 million shares in Hong Kong and 150.9 million shares in international offerings.

  The announcement stated that, assuming that the over-allotment option was not exercised, based on the issue price of HK$123, it is estimated that the net proceeds will be approximately HK$20,929,500 million. If the over-allotment option is fully exercised, the company will issue an additional 25.722 million shares and raise approximately HK$3.1552 billion.

  According to media reports, it is reported that some institutions bid for the Netease stock at a price of 125.5 to 127 Hong Kong dollars per share in the dark market on Tuesday, a premium of 2% to 3.3% from their issue price. According to Wind data, NetEase closed up more than 7% in Hong Kong stocks on the 10th.

  According to the announcement of the Hong Kong Stock Exchange on June 5, Netease futures and options will be launched simultaneously on the day of listing and will be included in the list of approved short-selling designated securities on the day of listing.

  Zhang Gang, chief analyst of Southwest Securities, said that 360-fold subscriptions are considered "popular" in Hong Kong stocks.

  According to a report issued by Bank of Communications International, the valuation of NetEase's listing in Hong Kong corresponds to a price-earnings ratio of 22 times and 19 times in 2020 and 2021, respectively. It is expected that the revenue of the game business will maintain a compound growth rate of 15% in the next three years, and the revenue visibility is strong. According to SOTP (Classified and Total Valuation) evaluation, NetEase US stocks are given a target price of US$453 and Hong Kong stocks with a target price of HK$140, which corresponds to a price-earnings ratio of 23 times and 19 times in 2020 and 2021.

  According to Futu Securities, among the companies listed on the Hong Kong stock market this year, a total of 8 companies have a subscription rate that exceeds NetEase. One of the Yexing Group engaged in property management has a subscription rate as high as 1948 times. Among Internet companies listed this year, NetEase's subscription rate is currently ranked second, second only to the mobile card listed on June 1, the mobile card subscription multiple is 641 times.

  On the 11th, NetEase announced on the Hong Kong Stock Exchange that it would pay the first quarter dividend in US dollars. The company's shares will be traded on the Hong Kong Stock Exchange at the ex-dividend price. The payment of the first quarter dividend may affect the value of the shares and the trading price of the company’s American depositary shares and shares in the US and Hong Kong markets, respectively.

  The prospectus shows that NetEase's revenue in the first quarter of 2020 was 17.06 billion yuan, an increase of 18.3% year-on-year; the net profit attributable to NetEase shareholders' continuing operations was 3.6 billion yuan; and the comprehensive income attributable to NetEase's shareholders was 4.078 billion yuan. (Sino-Singapore Jingwei APP)