Zhihu, a Quora-like company, has raised $106 million in a Hong Kong listing

Zhihu, a Quora-like company, has raised $106 million in a Hong Kong listing ...

HONG KONG, April 14 (Reuters) - According to two sources who have direct knowledge of the topic, Chinese question and answer website Zhihu Inc set a price on HK$32.06 each.

According to its regulatory filings, the company sold 26 million shares in its double primary listing.

Zhihu did not respond to a request for feedback immediately.

The deal comes amid an increase of Chinese firms listing in Hong Kong, as the regulatory standoff between Beijing and Washington shows no signs of ending.

The dispute over allowing access to Chinese companies' accounts for US auditors poses doubt about the future of those companies' listings in the United States.

Washington is demanding full access to Chinese corporations listed in the United States, but Beijing has previously barred foreign inspections of working papers from local accounting firms.

The Chinese Securities and Exchange Commission (CSRC) announced earlier this month that it would modify the confidentiality laws relating to offshore listings, which might erase a legal obstacle to the company's confrontation.

Zhihu, which, like Quora Inc, has allowed users to publicly post questions to others, which was first published in New York in March last year.

According to a term sheet for the transaction, two of its US-listed depository receipts equal one Hong Kong share.

The stock will begin trading on the Hong Kong Stock Exchange on April 22, according to regulatory filings.

According to a term sheet, four existing shareholders, led by Capital Today and Innovation Works, sold the stock for Zhihu's Hong Kong listing.

On Wednesday, Zhihu's New York stock fell 2.2 percent as the bookbuild for the Hong Kong listing was being completed.

So far, the company's stock is down 61.6 percent.

($1 = 7.8393 Hong Kong dollars)

Our Standards:

You may also like: