Bilibili raises $700M through convertible notes and equity placement

SHANGHAI, Sept. 04, 2026 /CourierPR/ -- Bilibili Inc., a leading video community for young generations in China, has announced a significant financial move, raising US$700 million through a combination of convertible senior notes, an equity placement, and share repurchases. The company’s actions are aimed at bolstering its growth strategies, enhancing its AI capabilities, and supporting general corporate activities.

Bilibili plans to utilize the funds raised from this offering in several key areas. First, US$200 million of the principal amount of the convertible senior notes will be subscribed for by Tencent Holdings Limited, a major technology player in China. The remaining US$500 million will be sold to other investors through financial institutions.

The convertible senior notes, due in 2031, come with an initial conversion rate of 50.3374 Class Z ordinary shares per US$1,000 principal amount of notes, equivalent to an initial conversion price of approximately HK$155.79 per Class Z ordinary share. This price represents a 28.3% conversion premium over the closing price of HK$121.40 per Class Z ordinary share on the Hong Kong Stock Exchange on September 4, 2026. The notes will not bear regular interest, and the principal amount will not accrete.

In addition to the convertible notes, Bilibili is also conducting a concurrent equity placement. The company has offered 6,976,760 Class Z ordinary shares at a price of HK$115.38 per share. This offering is being facilitated by certain financial institutions acting as initial purchasers. Tencent has also subscribed for 26,374,900 Class Z ordinary shares at the same price, bringing the total shares sold in the concurrent equity placement to 33,351,660.

Following the equity placement, Bilibili will repurchase shares from Tencent and its own shareholders. The company has agreed to repurchase 13,591,090 Class Z ordinary shares held by Tencent, and an additional 6,795,540 Class Z ordinary shares offered in the concurrent delta offering. Both repurchases will be conducted at the Reference Price of HK$115.38 per share. Bilibili’s board has authorized a special share repurchase program of up to US$300 million for these repurchases.

The concurrent share repurchases are subject to shareholder approval at an upcoming extraordinary general meeting (EGM). The company plans to convene the EGM in the near future to seek approval for the repurchase of the shares.

Bilibili intends to use the proceeds from these transactions to fund various initiatives, including enhancing its AI capabilities, boosting user engagement, and improving productivity. The company is also committed to general corporate purposes, which may include strategic investments and operational improvements.

While the transactions are subject to regulatory approvals and other customary conditions, Bilibili remains optimistic about the potential benefits of this financial maneuver. The company’s commitment to innovation and growth underscores its position as a key player in the Chinese digital entertainment landscape.