NetEase’s Music App Raises $422 Million in Hong Kong IPO

(Bloomberg) -- The music streaming arm of Chinese gaming giant NetEase Inc. raised $422 million in its Hong Kong initial public offering, pricing the shares at the mid-point of a marketed range.

Cloud Village Inc. sold shares at HK$205 ($26.30) apiece, according to terms of the deal obtained by Bloomberg. The company had marketed 16 million shares for HK$190 to HK$220 apiece, according to a preliminary prospectus. The shares will start trading on Dec. 2.

Cloud Village revived plans for an IPO after putting the listing on hold earlier this year, delaying it just days after the company began gauging investor demand. It had been pursuing an IPO of about $1 billion, Bloomberg News reported in May.

The listing comes as China tightens control over its data, introducing a draft new rule that would require Hong Kong IPO candidates to undergo a cybersecurity review if the data they amassed could impact national security. Cloud Village’s prospectus offered a lengthy analysis of the potential risks of the new regime, and said it hasn’t been involved in any investigation, nor has it received any inquiry or notice in relation to the new rule.