(Yicai Global) Jan. 10 -- Bilibili’s stock price dropped after the Chinese video-streaming site operator announced a planned USD410 million private placement of shares to raise funds to repurchase convertible bonds.

Bilibili [HKG: 9626] closed 4.4 percent lower at HKD214.20 (USD27.46) a share in Hong Kong today. Its New York-listed stock [NASDAQ: BILI] tumbled 5.8 percent to USD27 yesterday.

Bilibili will issue 15.3 million American depository shares at USD26.65 apiece, a discount of about 7 percent on Jan. 6’s closing price of USD28.65, with at least six investors, the Shanghai-based firm said late yesterday.

Some of the proceeds will be used to buy back USD384.8 million of convertible bonds maturing in December 2026, Bilibili said, adding that the rest will go to refinance USD550 million of convertible bonds due in December 2026 and 2027 that it repaid in the fourth quarter of last year and replenish working capital.

The share placement reflects the capital market’s bullish views on Bilibili, it said. The company’s gearing ratios will shrink significantly after the placement, it pointed out.

Bilibili’s revenue rose 16 percent to CNY15.8 billion (USD2.2 billion) in the first three quarters of 2022 from a year earlier, according to the company’s most recent earnings report. Its net loss widened 28 percent to CNY6 billion (USD845 million).

The company had CNY23.9 billion of cash and cash equivalents, time deposits, and short-term investments as of Sept. 30. Funds are sufficient to address long-term uncertainties, the firm said.

Bilibili had an average of 90.3 million daily active users and 333 million monthly active users in the third quarter of 2022, both up 25 percent on a yearly basis. Average monthly paying users rose 19 percent to 28.5 million.

Editor: Futura Costaglione