What’s the story?
Chinese internet company Bilibili Inc., which is set to launch a Hong Kong IPO next Monday, got Weibo talking about the listing on Friday for all the wrong reasons. The video platform, which hopes to raise up to $3.2 billion, appeared to have copied parts of the stock exchange-required information table directly from search giant Baidu Inc., which listed in a similar but somewhat underwhelming Hong Kong IPO on March 23. Both companies used the same legal firm for their Hong Kong offerings, which will complement existing listings in New York. A fintech insider said companies tend to use a template to complete listing documents, and some mistakes in copying information are inevitable. One underwriter said that as long as the financials are accurate, such an error is not very significant.
The listings of Baidu Inc. and Bilibili Inc. are being closely watched to see if Hong Kong’s IPO market still has steam, given their size and high profile as tech companies.
What are people saying online?
Commenters on the story on Weibo feel the error does not paint Bilibili in the best light. “‘B station’ is such a diminutive station,” wrote one, calling Bilibili by its common nickname. It reminds people of school exams and “cheating by writing your name on someone else’s answer sheet.” Social media users speculate that the relationship between the two tech companies may be closer than simply clients of the same law firm. “It suggests Bilibili belongs to Baidu,” and “Uncle, the truth is out. Baidu is also mine” are two representative comments. Another comment focused on the big money passing through Hong Kong on the backs of these tech firms, “This is nothing short of a flood at the convergence of two dragons.”