(Yicai Global) March 12 -- Shares in Baidu shot up 6.76 percent in New York yesterday after the Chinese internet giant announced that it is seeking to raise as much as USD3.6 billion in a secondary listing in Hong Kong at the end of the month.

Beijing-based Baidu’s stock price [NASDAQ:BIDU] ended the day at USD272.38.

The company will issue 95 million shares at a maximum price of HKD295 (USD38) each, Baidu said in its listing prospectus. Five percent will be a Hong Kong offering and the rest an international offering, it said.

Operating under the highly auspicious stock ticker code of 9888 (eight being regarded as a lucky number in China), trading is scheduled to begin on March 23.

The company is also likely to exercise the greenshoe option, which will allow underwriters to allocate an extra 14.25 million shares should there be enough demand.

The funds will be used to further develop Baidu’s mobile ecosystem, the commercialization of new artificial intelligence products and to supplement working capital, it added.

Once the secondary listing is complete, the Hong Kong shares will be fully convertible with its American depositary shares on the Nasdaq, one ADS being worth eight ordinary shares, the firm added.

Editor: Kim Taylor