Bilibili plans $700 million convertible notes and equity placements

SHANGHAI, Sept. 04, 2026 /CourierPR/ -- Bilibili Inc., a leading video community in China for young generations, announced plans to raise approximately $700 million through a series of financial moves aimed at bolstering its growth and operations. The moves include the issuance of convertible senior notes, concurrent equity placements, and share repurchases.

Bilibili intends to use the proceeds from the proposed $700 million convertible senior notes, due in 2031, for various purposes. The company will allocate the funds to fund two concurrent share repurchase programs, Delta Repurchase and Tencent Repurchase. Additionally, the funds will support AI-driven growth initiatives, such as enhancing content comprehension, user engagement, and productivity, and for general corporate purposes.

The convertible senior notes, with a principal amount of $700 million, are subject to market conditions. Of this, $200 million will be subscribed by Tencent, through its subsidiary, in addition to the $500 million to be offered to non-Tencent investors. These notes will initially be available only to non-U.S. persons who are "qualified institutional buyers" in compliance with U.S. securities laws.

Upon issuance, the notes will mature on September 15, 2031, unless repurchased, redeemed, or converted earlier. Holders can convert their notes into Bilibili's Class Z ordinary shares, with the initial conversion rate and other terms to be determined at pricing. The company may redeem the notes at certain times, including if the share price exceeds a specified threshold or if less than 10% of the notes remain outstanding.

In connection with the convertible senior notes offering, Bilibili will engage in a concurrent equity placement. The company will borrow Class Z ordinary shares from non-affiliate third parties, which will be offered by initial purchasers to non-U.S. persons. Tencent is also planning to sell approximately $400 million of Class Z ordinary shares, making this the Concurrent Equity Placement.

The proceeds from the concurrent equity placement will be used to repurchase shares in two separate programs: the Concurrent Delta Repurchase and the Concurrent Tencent Repurchase. Both repurchase programs will use the reference price determined through the bookbuilding process for the equity placement. Bilibili's board of directors has authorized a special share repurchase program of up to $300 million for these concurrent repurchases.

Bilibili plans to convene an extraordinary general meeting (EGM) to seek approval for the Tencent Repurchase, requiring at least three-fourths of the votes cast by disinterested shareholders.

The company emphasizes that the notes, the shares deliverable upon conversion, and the shares to be offered in the concurrent equity placement have not been and will not be registered under U.S. or Chinese securities laws. They may not be offered or sold within the United States or to U.S. persons, except pursuant to registration or an applicable exemption.

Bilibili cautions that there is no guarantee that any of these transactions will be completed, and the outcomes of the EGM are uncertain.