Insiders: Baidu needs a lot of money to exit the market

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Original title: Baidu or delisting from Nasdaq? Baidu: no comment
Source: 21 Finance
Robin Li, chairman of Baidu Inc, said, “we are constantly discussing what we can do, including the two listing in Hongkong and other places.”
On the evening of May 21, Baidu said it would not comment on the media’s earlier reports of Baidu. O or its consideration of delisting from NASDAQ.
Previously, it was reported that Baidu was considering delisting from Nasdaq to raise its valuation. Baidu is working with some of its advisers to understand the best way to conduct the deal, including financing related issues and regulatory responses, the source said.
On the news, the US Senate approved the foreign company holding responsibility act on May 20 local time, which requires Chinese companies listed in the us to prove that they are not owned or controlled by foreign governments. The legislation may prevent Chinese companies from listing on U.S. stock exchanges and raising funds.
Once the news was released, it affected the stock price of key stocks. Alibaba. N, Baidu and JD. O all plunged Wednesday. Alibaba’s shares closed at $216.79, down 0.19%, baidu closed at $108.52, down 1.12%. JD started to pull up after the plunge, closing up 0.05% to $54.31.
On the 21st, the stock price of China’s general shares plunged in front of the market, while Baidu’s stock price fell more than 6% at one time. As of publication, JD fell 2.63%, pinduoduo fell 2.46%, baidu fell 1.06% and Alibaba fell 1.89%.
Around the US side, tightening control over the stock taking companies has been held. On the forenoon of May 21st morning, Robin Li, chairman of Baidu Inc, said, “we are constantly discussing what can be done, including the two listing in Hongkong and other places.”
In addition, some industry insiders who do not want to be named have analyzed to 21st century economic reporter that once Baidu chooses privatization to delist, the amount of capital needed is huge. It is understood that the price premium of privatization offer is generally 30% – 50%. At present, Baidu’s circulating shares account for 79.11%. The latest market value is $37.5 billion, which means that the circulating shares are $29.6 billion. If calculated at a premium of 40%, the amount of funds needed for its privatization and delisting is about US $41.533 billion. Therefore, in this person’s view, the credibility of the news is low.
(author: Yang Qingqing)