At the beginning of the year we wrote a list of 17 Chinese tech firms shooting for IPO in 2011. Since writing that list, 7 Chinese tech firms have joined NASDAQ or NYSE and we believe there are still 5 more to go.
Whereas the IPO seem somewhat passé for US internet firms, many of whom are pushing back an IPO for as long as possible, it’s still red-hot for Chinese tech firms. Of China’s 13 IPOs so far this year (see full Chinese list), 7 are tech companies.
The most immediate candidates are Xunlei and Cloudary, which have filed their F-1s and are rumoured to IPO on July 20 and 27, respectively. Tudou and VANCL are also said to be very close to filing.
Seven Chinese tech firms have IPOed thus far in 2011: Qihoo 360, 21Vianet, Renren, Netqin, Jiayuan, Phoenix New Media, and Taomee.
5 More to Go
Five more are likely to IPO in 2011: Xunlei, Cloudary, Tudou, VANCL, and LaShou.
Shenzhen-based Xunlei is China’s largest download client, used primarily for movies and music. Advertising is its largest source of revenue, but the firm also sells value-added services to users, like cloud storage space to host videos and music.
Xunlei has already filed its F-1 and may IPO as soon as July 20.
The name “Cloudary” is a portmanteau of “cloud library.” Cloudary operates 6 websites for user-generated literature, 3 for professional publishers, and 1 eBook platform. Cloudary is a subsidiary of Shanda Interactive (NASDAQ: SNDA).
Cloudary has filed its F-1 and plans to IPO on the NYSE under the ticker READ as soon as July 27.
Tudou is one of China’s leading online video sites. It has been aiming for IPO since November 2010, but was delayed due to a lawsuit by founder and CEO Gary Wang’s ex-wife, who claimed a right to a large stake in Tudou.
The suit has since been settled, which led to Tudou’s latest refiling, and Tudou now finally appears set to IPO.
Online-only apparel brand VANCL has selected its underwriters and is reportedly close to IPO. Vancl was founded in Oct. 2007 by Chen Nian, also the founder of joyo.com, another online retailer that was acquired by Amazon.
LaShou holds 14% of China’s group-buying market, according to group-buying aggregator Dataotuan. It is positioned as a mass-market group-buying site.
LaShou raised a huge $110 million series C investment at a $1.1 billion valuation. It now reportedly faces strong investor pressure to IPO.
The iChinaStock 30
The iChinaStock 30, which includes a rich swath of Chinese tech firms including BIDU, SINA, RENN, and CTRP, has been volatile as ever over the past year. Overall, its gone from about $900 in August 2010 to just over $1100 as of July 18, a robust increase of 22%.
TechCrunch has also published a list of big tech IPOs year to-date, though it includes only Renren on the Chinese side.
Kaixin001 – Social network Kaixin001′s SEC application reportedly failed to pass muster due to its dismal decline in traffic. It may have missed its chance entirely.
Synacast (PPLive) – Synacast, the parent company of TV streaming and video-on-demand service PPLive, pulled down $250 million from Japan’s Softbank in exchange for a 35% stake. That huge round should push back any IPO plans.
Qunar – After a recent $306 million investment from Baidu, travel search engine Qunar is in no rush to IPO though it does plan to do so eventually.
These firms were in our last report, but there’s been no recent news of IPO plans:
- Red Baby – maternity and baby e-commerce site
- Baofeng – desktop client for streaming video and music
- PPStream – TV streaming and video-on-demand
- UCWeb – mobile browser
- 3G.cn – mobile portal
- Yicha – mobile search
- HeXun – financial news portal
If market conditions remain favourable, we can expect many more IPOs in 2012 as well.
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