#3 - NetEase (NASDAQ:NTES)
A third Chinese company that has recently completed an IPO to trade on the Hong Kong Stock Exchange is NetEase (NASDAQ:NTES). The offering, which netted the company $2.7 billion, was expected to dilute NTES shares by approximately 5%. NetEase is China’s second-largest gaming company, but the largest that is listed on a major U.S. exchange.
The IPO is said to be used to accelerate its international expansion. NetEase Chief Executive Officer (CEO) William Ding said the Hong Kong IPO was a sign that NetEase was “returning to a market in which we share a closer mutual understanding.” That was undoubtedly a veiled critique of U.S. regulators. However, there’s more to that story. In 2001, NetEase was almost delisted from the NASDAQ. The company was the subject of fraud allegations and missing an annual report.
However, like JD.com, NetEase has recently spun off Youdao (NYSE:DAO) its online education unit which suggests they are not looking to leave the U.S. exchanges.
About NetEase
NetEase, Inc engages in online games, music streaming, online intelligent learning services, and internet content services businesses in China and internationally . The company operates through Games and Related Value-Added Services, Youdao, Cloud Music, and Innovative Businesses and Others segments.
Read More - Current Price
- $80.51
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 4 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $112.67 (39.9% Upside)
