Benzinga | Nov 23, 2021 08:27AM EST

NetEase Fires Up Tencent Rivalry Via Hong Kong IPO Of Music Business

* NetEase Inc (NASDAQ:NTES) launched the Hong Kong initial public offering (IPO) of its music business, Cloud Village, to raise a maximum of $519.6 million (HK$4.04 billion).

* Cloud Village will offer 16 million shares at HK$190 - HK$220.

* There is an over-allotment option to issue an additional 2.4 million shares.

* Cloud Village runs NetEase's music streaming business. Cloud Village has 185 million monthly active users, CNBC reports.

* Cloud Village's revenue rose 51.5% year-on-year to CNY 5.1 billion ($799.6 million) for the nine months ended September 30.

* However, Cloud Village suffers heavy losses as it competes for market share against Tencent Holdings Ltd's (OTC: TCEHY) music streaming business Tencent Music Entertainment Group (NYSE: TME).

* Related Content: Alibaba Backed NetEase's Online Music Business Gears For Hong Kong IPO Worth $1B

* Price Action: NTES shares traded higher by 2.42% at $116 in the premarket session on the last check Tuesday.