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BEIJING - Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)), a prominent AI company with a market capitalization of $33.1 billion and an impressive "GREAT" financial health score according to InvestingPro, announced today the completion of its CNY 10 billion offering of senior unsecured notes. The offering, which took place offshore to non-U.S. persons, consists of CNY 7.5 billion at 2.70% due in 2030 and CNY 2.5 billion at 3.00% due in 2035.
The company has stated that the net proceeds from the offering will be utilized for general corporate purposes, which include the repayment of certain existing debts and payment of interest. Notably, Baidu maintains strong financial flexibility with a healthy current ratio of 2.09 and a conservative total debt-to-capital ratio of 0.23. The notes were not registered under the U.S. Securities Act or any state securities laws and are not to be offered or sold in the United States absent registration or an applicable exemption from these requirements.
The notes are expected to be listed and permitted for dealing on The Stock Exchange of Hong Kong Limited starting March 13, 2025. This listing marks a significant financial maneuver for Baidu as it continues to expand its operations and solidify its financial structure.
Baidu, founded in 2000, is recognized for its significant contributions to AI technology and its strong presence on the Internet. Currently trading at a P/E ratio of just 9.96, the stock appears undervalued based on InvestingPro’s Fair Value analysis. The company trades on the NASDAQ and the Hong Kong Stock Exchange with the ticker symbols "BIDU" and "9888" respectively.
In their announcement, Baidu also included forward-looking statements, cautioning that these are subject to risks and uncertainties that could cause actual results to differ materially from expectations. The company emphasized that it does not undertake any obligation to update any forward-looking statement unless required by applicable law.
This financial news is based on a press release statement provided by Baidu, Inc. and does not constitute an offer to sell or a solicitation of an offer to purchase any securities in the United States or elsewhere.
In other recent news, Baidu has finalized a $2 billion exchangeable bond offering, set to mature in 2032. The bonds, which are linked to Trip.com shares, were sold in offshore transactions and will be listed on the Frankfurt Stock Exchange. The proceeds from this offering are earmarked for repaying existing debts, covering interest payments, and general corporate purposes. Additionally, Baidu has completed the acquisition of YY Live for approximately $2.1 billion. This acquisition marks Baidu’s strategic expansion into the live streaming sector in China, with plans to enhance its cloud and AI infrastructure. The company has also released $1.6 billion from escrow accounts related to this acquisition. These developments reflect Baidu’s ongoing efforts to strengthen its position in the tech industry. The company has not committed to updating any forward-looking statements beyond legal requirements.
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