Baidu launches secondary Hong Kong public offering

Chinese search engine Baidu Inc. said March 11 that it launched its secondary Hong Kong public offering, with a maximum offer price of HK$295 per share.

Following the offering, the company's shares will be listed on the Main Board of The Stock Exchange of Hong Kong Ltd. under the 9888 stock code.

The offering initially comprises 4,750,000 shares, representing 5% of the total offer shares, under the Hong Kong public offering and 90,250,000 offer shares, or 95% of total offer shares, for the international offering.

Baidu said it will set the international offer price on or about March 17.

The Hong Kong offering could be adjusted to up to a maximum of 11.4 million offer shares, or about 12% of the shares initially available under the offering, subject to the level of oversubscription.

Baidu also expects to grant the international underwriters an overallotment option to require the internet company to issue up to an aggregate of 14,250,000 additional shares in the international offering, or 15% of the shares initially available under the offering.

The company intends to use the offering's net proceeds to continue investing in technology, improve the commercialization of its artificial intelligence products, grow the Baidu mobile ecosystem, and for working capital and other general corporate purposes.

Baidu expects to raise at least $3.03 billion from the offering.

The joint sponsors of the offering are BofA Securities Inc., CLSA Capital Markets Ltd. and Goldman Sachs (Asia) LLC.