Chinese tech giant NetEase is going ahead with the spin-off IPO of Cloud Village, the company that runs music streaming service NetEase Cloud Music. It will be selling 16m new shares for up to HK$220 ($28.23) to raise up to HK$3.52bn ($451.6m).

In its announcement of the Hong Kong IPO, Cloud Village said that it will use the funds “for continuingly cultivating its community, innovating and improving technological capabilities, selected mergers, acquisitions and strategic investments, and general corporate purposes”.

Its M&A plans in particular will be watched with keen interest well beyond China and Hong Kong. NetEase Cloud Music has always been relatively careful about what figures it discloses publicly, so its prospectus will also be pored over.

We reported on some of the key figures last week: 184 million monthly active users and revenues of around $407.3m in 2020. The prospectus also notes that Sony Music Entertainment is one of Cloud Village’s “cornerstone investors” alongside NetEase and investment firm Orbis Investments.

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