(Yicai Global) June 10 -- NetEase, a huge Chinese internet company, has completed the issuance of new shares for its secondary listing tomorrow on the Hong Kong stock market, and has fixed its issue price at HKD123 (USD15.90) per share.

Net proceeds from the global offering, which are expected to reach HKD20.93 billion (USD2.7 billion), will go towards the Guangzhou-based company’s globalization strategy and its development of innovative technology.

NetEase’s listing has been greatly oversubscribed. If all the greenshoe over-allotment rights are exercised, it will receive an additional net HKD3.2 billion.

The company will use 45 percent of the proceeds from this offering to push its globalization, another 45 percent to enrich and upgrade its innovative content and technologies, and the remaining 10 percent for general purposes, according to its prospectus.

The firm’s new shares will begin trading on the Main Board of the Hong Kong Stock Exchange at 9.00 a.m. tomorrow under the stock symbol [HKG:9999].

NetEase, which listed on the Nasdaq in 2000, is an integrated internet service provider. Its net revenues were CNY17.06 billion (USD2.4 billion) in the first quarter, up 18.3 percent, per its latest financial data. Its core online gaming business posted a 14.1 percent net revenue growth in the same period to CNY13 .5 billion. It accounts for 79 percent of all company revenue.

Top Six

The firm, which has a current market value of USD52.8 billion, is the sixth-largest internet company in China in market value after Alibaba Group Holding, Tencent Holdings, Meituan-Dianping, JD. Com and Pinduoduo. Founder Ding Lei holds 44.7 percent of shares pre-offering.

NetEase [NASDAQ:NTES] closed at USD409.54, up 0.10 percent yesterday. The stock rose to a record USD427.33 high in intraday trading on June 5. Each of its American depositary shares equals 25 Hong Kong shares.

A greenshoe is an over-allotment option in an initial public offering based on a clause in an underwriting agreement granting the underwriter the power to sell investors more shares than the issuer initially planned if demand outstrips expectations.

An American depositary share is a US dollar-denominated stock of a foreign-based company sold on a US bourse. ADSs are issued by US depository banks under agreement with the foreign company listing in the US.

Editor: Ben Armour