(Yicai Global) May 27 -- NetEase Cloud Music, China's second-largest music streaming platform, could raise as much as HKD7 billion (USD901.9 million) from its initial public offering in Hong Kong, according to a media report.

Each share may be priced as high as HKD330 (USD42.50) and the floated equity should equal 10 percent of the firm's total share capital, news outlet Jiemian reported yesterday before the mobile application's operator, Cloud Village, filed its prospectus with the Hong Kong bourse that day.

The audio streaming service of Guangzhou-based NetEase joins a clutch of firms whose shares are floating in Hong Kong, including JD.Com's JD Logistics and JD Health International, amid the tightening regulatory environment in the United States.

Cloud Village is not yet profitable. The rival of Tencent's QQ Music expanded its net loss by half to CNY3 billion (USD470.4 million) in 2020 from 2019, according to the listing application. Revenue more than doubled to CNY4.9 billion.

Last year, online music services made up nearly 54 percent of the company's revenue. Other income drivers included social entertainment services.

The app's user base is widening. The number of monthly active users rose 23 percent to 181 million in 2020 from 2019. Meanwhile, the tally of paying clients jumped 85 percent to 16 million, or nearly 9 percent of all users.

Before the IPO, NetEase is Cloud Village's biggest shareholder with 62.5 percent of the equity. Taobao China Holding has a 10.8 percent stake and Baidu's Hong Kong unit holds 4.3 percent.

Editor: Emmi Laine, Xiao Yi