Tags: Microblog | Weibo | China | IPOs

Microblogger Weibo Joins Flood of China Firms Seeking US IPOs

Friday, 04 April 2014 05:51 PM

Weibo Corp., China’s biggest microblogging outlet, is seeking as much as $380 million in an initial public offering, joining a slew of Chinese Internet companies looking to list newly issued shares in the U.S.

The company plans to offer 20 million shares for $17 to $19 apiece, according to a regulatory filing Friday. At the top of the offering range the company would have a market value of over $3.4 billion, excluding the underwriters option to buy more shares, the filing shows. Weibo, based in Beijing, plans to use some of the proceeds from the offering to repay loans to parent Sina Corp., which currently has a 78 percent stake.

In the first quarter, China-based companies announced more than $2.5 billion of U.S. IPOs, data compiled by Bloomberg show. JD.com Inc., the Chinese retailing website that just received an investment from Asia’s largest Internet company Tencent Holdings Ltd., has filed to raise $1.5 billion, and Leju Holdings Ltd., an online real-estate company, said Friday that it is seeking as much as $212 million in an IPO.

Alibaba Group Holding Ltd., China’s biggest e-commerce company, agreed in April to buy an 18 percent stake in Weibo for $586 million, and plans to exercise an option to raise that stake to 30 percent, according to the filing. Alibaba is also preparing to go public in the U.S., the company has said.

Weibo’s proceeds from the IPO and Alibaba’s investment will be $377.2 million, according to the filing. Sina will have 80 percent of the voting power after the sale, while Alibaba will have 15 percent.

At $3.4 billion Weibo is asking for a value of about 18 times 2013 sales of $188 million. Revenue surged to that amount, from $65.9 million last year, the filing shows. Twitter Inc., the San Francisco-based microblogging service with more than 200 million users, has a market value of $24.5 billion, or about 30 times sales. Twitter has gained 66 percent since its November debut.

Goldman Sachs Group Inc. and Credit Suisse Group AG are managing the offering. Weibo plans to list its shares on the Nasdaq Stock Market under the symbol WB.

© Copyright 2021 Bloomberg News. All rights reserved.


StreetTalk
Weibo Corp., China's biggest microblogging outlet, is seeking as much as $380 million in an initial public offering, joining a slew of Chinese Internet companies looking to list newly issued shares in the U.S.
Microblog,Weibo,China,IPOs
356
2014-51-04
Friday, 04 April 2014 05:51 PM
Newsmax Media, Inc.
 
Newsmax TV Live
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved