Kewei Law Firm advises Weibo Corporation on convertible notes issuance and delta placement

By admin Dec19,2023

Kewei Law Firm has advised Weibo Corporation (NASDAQ: WB; HKEX: 09898) on its US$330 million convertible senior notes (Notes) issuance and US$63.5 million offering of American depositary shares (ADSs).

Weibo, China’s leading social media company, issued US$330 million of 1.375% Notes due 2030, with an option for the initial purchaser of the Notes to purchase an additional US$30 million of Notes.

Concurrently with the Notes issuance, Weibo lent 6,233,785 ADSs to the initial purchaser in the ADSs offering, which is known as the Delta Placement of Borrowed ADSs.

The Delta Placement of Borrowed ADSs facilitates short sales and/or privately negotiated derivative transactions through which investors in the Notes may hedge their exposure.

“We are delighted to have advised Weibo on this high-profile overseas fundraising,” said Kewei TMT partner Justina Zhang, “With global expertise and on-the-ground presence, we are able to support Chinese companies whenever they need to access international capital and investors.”

Justina led the cross-office team advising Weibo as PRC counsel on the Notes and ADS offerings, supported by Kewei associate Tracy Chen.

Legal manager Jane Yang, legal specialist Abby Zhang, and legal analyst Jarros Fang from the Alternative Legal Services department assisted with document-intensive process.

The team also advised Weibo on the filing of the offerings with the National Development and Reform Commission and the China Securities Regulatory Commission.

By admin

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