GUANGZHOU, China — Baidu will raise at least $3 billion in a Hong Kong secondary listing this month, two people familiar with the matter told CNBC, making it the latest Chinese tech giant to raise money in the financial hub.
The listing will be completed before the end of the month, they said.
Baidu, which is listed in the U.S. on the Nasdaq, will issue 4% of its shares, one of the people said.
The book building process could begin as early as Friday with the final pricing of the shares to be announced toward the end of next week, the person, who spoke on condition of anonymity because the details of deal are not yet public, told CNBC.
Baidu declined to comment when contacted by CNBC.
Baidu joins a long list of Chinese tech companies that are currently listed in the U.S. and have done secondary offerings in Hong Kong. They include Alibaba, JD.com and NetEase. CNBC reported in January that Chinese video streaming company Bilibili has also filed for a Hong Kong secondary listing.
These listings have transformed the Hong Kong stock exchange into an attractive place for Chinese tech companies to raise capital.
Meanwhile, tensions between the U.S. and China have pushed some Chinese firms to look at secondary listings closer to home. In December, former U.S. President Donald Trump signed legislation that threatened to delist firms that do not comply with American auditing standards.
Diversification plans
Baidu could also be taking advantage of a huge 128% rise in its shares in the last 12 months in order to raise capital.
While it has traditionally been known for its search and advertising business, Baidu has more recently looked to diversify.
The company has been focusing on its autonomous car business and is setting up standalone companies. CNBC reported in February that Baidu is looking to raise money for an artificial intelligence semiconductor company.
Baidu also set up a standalone electric vehicle business with automaker Geely and is raising money for a biotechnology company.
Source: Finance - cnbc.com
