Recent Chinese Internet IPOs are seeing strong interest from US investors. Today’s IPO 21Vianet priced above the range and follows on the heels of the impressive debut of Qihoo 360 Technology (QIHU) on March 30. Qihoo 360’s first day return of 134% was the third best performance for a US-listed IPO over the last 10 years.
Qihoo 360 Technology, which offers a safe web browser and other Internet security products in China, raised $176 million by offering 12.1 million ADSs at $14.50, above the initial range of $10.50 to $12.50. UBS Investment Bank and Citi acted as lead managers on the deal.
21Vianet Group (VNET), a largest carrier-neutral Internet data centre services provider in China, raised $195 million by offering 13 million ADSs at $15, above an upwardly revised range of $12 to $13. The company had originally filed to sell 11.5 million ADSs at a price of $10-$12 on April 6. The $195 million in gross IPO proceeds was $68 million (or 54%) greater than its originally planned deal size. At $15, the company commands a market value just under $900 million, or more than 10x its 2010 sales. Morgan Stanley, Barclays Capital, and J.P. Morgan acted as lead managers on the deal.
Other recent high-flying Chinese Internet IPOs include leading online bookseller E-Commerce China Dangdang (DANG) and China’s #1 online video portal Youku.com (YOKU), dubbed the Chinese Amazon.com and Youtube.com, respectively. Both companies went public in December 2010.
E-Commerce China Dangdang, China’s largest online bookseller and operator of a rapidly-growing e-commerce platform, raised $272 million by selling 17 million ADSs at $16, above an upwardly revised range of $13 to $15. The company originally filed with a price range of $11-$13 per ADS. Credit Suisse and Morgan Stanley acted as lead managers on the deal.
Youku.com, which operates China’s leading internet television/online video portal, raised $203 million by offering 15,847,700 ADSs at $12.80, above the range of $9.00 to $11.00. Goldman Sachs (Asia) L.L.C. acted as lead managers on the deal.
Dangdang is currently trading 50% above its offer price, while Youku.com is now up an incredible 402%.
Two additional Chinese Internet companies are scheduled to complete IPOs over the next two weeks: mobile Internet security provider NetQin (NQ) and the highly-anticipated offering from China’s leading social network Renren (RENN). If successful, we suspect more Chinese IPOs could be added to the IPO calendar in the coming weeks.
NetQin Mobile Inc., which provides Internet services to protect mobile users from security threats in China, plans to raise $75 million by offering 7.1 million ADSs at a price range of $9.50 to $11.50. At the mid-point of the proposed range, NetQin Mobile Inc. will command a market value of $498 million. The Beijing-based company, which was founded in 2005 and booked $18 million in sales last year, plans to list on the NYSE under the symbol NQ. Piper Jaffray is the lead underwriter on the deal.
Renren has generated media buzz as the “Facebook of China” and an intriguing play on China, Internet growth and social media. These trends have gained immense popularity among IPO investors in recent months. Renren has amassed a 117 million-strong user base by offering access to third-party applications, content, messaging services, online games and other activities. The fast-growing company plans to raise $531 million by offering 53.1 million ADSs (19% insider) at a price range of $9 to $11, as well as an additional $110 million in a concurrent private placement. Renren plans to list on the NYSE under the symbol RENN. Morgan Stanley, Deutsche Bank Securities and Credit Suisse are the lead underwriters on the deal.
Another China-based Internet company filed for an IPO today. Jiayuan.com International Ltd., China’s largest online dating site with over 40 million registered users, filed with the SEC to raise up to $100 million in an initial public offering. The Beijing-based company, which was founded in 2003 and booked $25 million in sales last year, plans to list on the NASDAQ under the symbol DATE. BofA Merrill Lynch and Citi are the lead underwriters on the deal. No pricing terms were disclosed.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.