Chinese tech giant NetEase launches $500 million Hong Kong IPO for its music business
Summary
Cloud Village, the music streaming arm of NetEase runs the NetEase Cloud Music app which is displayed on a smartphone in this photo. GUANGZHOU, China — NetEase has launched the Hong Kong initial public offering (IPO) of its music business Cloud Village which could raise around $500 million. At the upper end of the range, Cloud Village would raise around 4.04 billion Hong Kong dollars ($519.6 million), not excluding fees and other expenses related to the IPO. Cloud Village runs NetEases music streaming business and the company says it has 185 million monthly active users. Its revenue rose 51.5% year-on-year to 5.1 billion yuan ($799.6 million) for the nine months ended Sept. 30 but it is still suffering heavy losses as it competes for market share against Tencents music streaming business.