On the morning of November 23rd, Netease Cloud Music announced the launch of the initial public offering in Hong Kong. The co-sponsors of the listing are Bank of America Securities, CICC and Credit Suisse.

According to the announcement, Netease Cloud Music will publicly issue 16 million common shares in the world, with the offering price range of HK$ 1.9-22 per share, and plans to raise HK$ 3.4-3.52 billion, with an over-allotment right of no more than 15%. According to the prospectus, Netease Cloud Music plans to start trading on the Hong Kong Stock Exchange at 9: am on December 2, with the code "9899.HK".

The offer price is HK$ 1.9-22, and it is planned to raise HK$ 3.4-3.52 billion.

According to the latest prospectus, Netease Cloud Music plans to offer 16 million shares globally, 9% of which will be allocated to international investors, about 14.4 million shares. 1% is publicly offered in Hong Kong, with about 1.6 million shares. The offer price is HK$ 19 to HK$ 22 per share, and it is planned to raise HK$ 3.4-3.52 billion. At the same time, Netease Cloud Music plans to grant international underwriters an over-allotment right of no more than 15% of the initial number of offering shares available for subscription according to the global offering.

according to the calculation in the prospectus, assuming that the over-allotment option has not been exercised, the shares publicly raised by Netease Cloud Music account for 7.7% of the total issued shares. Calculated by HK$ 19-22 per share, the valuation of Netease Cloud Music will be between HK$ 39.47 billion and HK$ 45.71 billion after listing.

According to the latest timetable, Netease Cloud Music plans to launch global sales on November 23rd, announce the final pricing and distribution on December 1st, and officially list on the Hong Kong Stock Exchange at 9: am on December 2nd.

Netease, Sony Music and Orbis as cornerstone investors * * * subscribed for $35 million

According to the prospectus, Netease Cloud Music has introduced three cornerstone investors, namely Netease, Sony Music Entertainment and Orbis Investment Management Co., Ltd., with a total subscription of $35 million. Among them, Netease subscribed for 2 million US dollars, Sony Music Entertainment subscribed for 1 million US dollars, and Orbis subscribed for 5 million US dollars.

Netease Cloud Music and Sony Music reached a comprehensive copyright cooperation in May this year. In addition to Netease Cloud Music being authorized by Sony Music Entertainment for several years, the two parties will also carry out more innovative explorations and new cooperation in music announcement, streaming service, online karaoke and music Mlog.

another cornerstone investor of Netease cloud music is Orbis investment management co., ltd. As the largest institutional shareholder of Netease Group, Orbis has established a long-term and stable investment cooperation relationship with Netease, which is also the re-cooperation between the two parties after Netease's listing on the US stock market.

at the same time, as the controlling shareholder and cornerstone investor, Netease continues to be optimistic about the long-term development of Netease Cloud Music. According to the data set, assuming that the over-allotment option has not been exercised, after the global sale, Netease holds over 6% of the shares of Netease Cloud Music, and the investor Alibaba holds about 1%.

In the first three quarters, revenue was 5.1 billion yuan, and monthly users reached 184 million

According to the latest prospectus, in the first three quarters of 221, Netease Cloud Music's total revenue was 5.1 billion yuan, up 52% year-on-year; The gross profit margin turned positive to .4%; Monthly users reached 184 million; The number of online music paying users was 27.52 million, an increase of over 93% year-on-year; The online music payment rate reached 14.9%.

in the first half of p>221, the average daily listening time of Netease Cloud Music users was 76.9 minutes, and the total number of UGC songs was about 2.8 billion. In June, 221, about 27% of monthly users took the initiative to create UGC, and about 3 times out of every 1 music plays were recommended by the platform.

in terms of original music, as of June 221, the number of independent musicians in Netease Cloud Music exceeded 3,.

In terms of copyright, Netease Cloud Music has recently reached copyright cooperation with Modern Sky, Hong Kong Emperor Entertainment and China Record Group. Netease 221 Q3 earnings conference was also officially announced, and Netease Cloud Music has reached a direct signing agreement with three major record companies in the world: Universal, Sony and Warner.

according to the data set, continuing to cultivate the music community is one of the main purposes of Netease cloud music fundraising, accounting for 4% of the total fundraising. Among them, it includes enriching diverse music content, excavating and supporting original musicians, and enhancing community activity and stickiness. In addition, 4% of this fundraising will be used to continue to innovate and improve technical capabilities, and the rest will be used for general purposes such as selection and merger, acquisition, strategic investment and daily operation.

This article is from Sina Technology and published by 36Kr with authorization.