Zhihu Inc. (ZH) Announces Pricing of Initial Public Offering

March 26, 2021 8:38 AM EDT

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Zhihu Inc. ("Zhihu" or the "Company") (NYSE: ZH), an iconic online content community in China, today announced that it has priced its initial public offering (the "IPO") of 55,000,000 American depositary shares ("ADSs"), at US$9.5 per ADS. The aggregate offering size of the IPO and the concurrent private placements described below is US$772.5 million, assuming the underwriters do not exercise their option to purchase additional ADSs, and approximately US$850.9 million, assuming the underwriters exercise their option to purchase additional ADSs in full. Each two ADSs represent one Class A ordinary share of the Company. The ADSs are expected to begin trading on the New York Stock Exchange today under the ticker symbol "ZH." The IPO is expected to close on March 30, 2021, subject to customary closing conditions.

The Company has granted the underwriters an option, exercisable for 30 days from the date of the final prospectus, to purchase up to an aggregate of 8,250,000 additional ADSs at the IPO price, less underwriting discounts and commissions.

Credit Suisse Securities (USA) LLC, Goldman Sachs (Asia) L.L.C. and J.P. Morgan Securities LLC are acting as joint representatives of underwriters and lead joint bookrunners for the offering (names in alphabetical order). China International Capital Corporation Hong Kong Securities Limited, CMB International Capital Limited, China Renaissance Securities (Hong Kong) Limited, CLSA Limited, Haitong International Securities Company Limited, and Lighthouse Capital International Inc. are acting as joint bookrunners for the offering (names in alphabetical order).

Concurrently with, and subject to, the completion of this offering, certain investors have agreed to purchase US$250.0 million in Class A ordinary shares from the Company, including (i) US$100.0 million by Taobao China Holding Limited, an affiliate of Alibaba Group Holding Limited, (ii) US$100.0 million by Purus Innovation Limited, an affiliate of JD.com, Inc., (iii) US$30.0 million by Image Frame Investment (HK) Limited, the Company's shareholder and an affiliate of Tencent Holding Limited, and (iv) US$20.0 million by Lilith Limited, an affiliate of Lilith Games, in private placement transactions pursuant to exemptions from registration with the U.S. Securities and Exchange Commission (the "SEC"), under Regulation S of the Securities Act of 1933, as amended. The concurrent private placements are expected to close concurrently with the closing of the IPO, subject to customary closing conditions.



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