GUANGZHOU, China — NetEaseIt has announced the Hong Kong initial public offer (IPO), of Cloud Village music business, which is expected to raise approximately $500 million.

Cloud Village will sell 16 million shares for a cost between 190 Hong Kong Dollars and 220 Hong Kong Dollars. However, the final price is not known.

As part of an Over-allotment Option, there is the possibility to issue an additional 2.5 million shares.

Cloud Village, which would be at the top of this range, would generate approximately 4.04 billion Hong Kong dollar ($519.6 millions), excluding any fees or expenses related to its IPO.

Cloud Village is the music streaming company of NetEase. The company claims it has 185 millions monthly active users. While its revenues rose 51.5% year over year to 5.1 Billion Yuan (7999.6 Million) during the nine-months ended September 30, 2018, it continues to suffer heavy losses because it faces Tencent’s streaming music business.

Revenue comes mostly from advertising, subscriptions, and purchases of virtual products on the company’s platforms.

NetEase filed the original application for listing Cloud Village back in August. reportedlyVolatility markets caused the IPO to be delayed.

In the Chinese technology industry, there has been a sharpening of regulatory requirements in many areas, including antitrust and data privacy. This has had a negative impact on the shares of some of China’s largest companies.