(Bloomberg) — The music streaming arm of Chinese gaming giant NetEase Inc., is reviving its plans for an initial public offering in Hong Kong after it put the listing on hold earlier this year.
Cloud Village Inc. refiled a preliminary prospectus to the Hong Kong stock exchange on Tuesday.
The unit could seek to raise about $500 million in an offering as soon as this year, according to people familiar with the matter who asked not to be identified as the information is private. Cloud Village had been pursuing an IPO of about $1 billion, Bloomberg News reported in May.
Cloud Village had decided in August to delay the IPO just days after it began gauging investor demand.
A representative for NetEase didn’t immediately respond to requests for comment on the listing size made outside normal business hours.
Cloud Village runs NetEase’s music streaming platform in China and generates most of its revenue through subscriptions, virtual gifting and advertising. Started in 2013, the music wing has since expanded its products to offer everything from online karaoke to live-streaming and lyrics sharing.
The unit grew its monthly music users to 185 million in the first six months of 2021, according to the preliminary prospectus.
Bank of America Corp., China International Capital Corp. and Credit Suisse Group AG are acting as joint sponsors.
(Updates with exchange filing from the first paragraph.)
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