China's micro-blogging service Weibo is expected to go public this month. The IPO could value the company at $3.9 billion.
China's Twitter-like micro-blogging service Weibo filed with the U.S. Securities and Exchange Commission (SEC) on Friday to offer 20 million American Depository Shares at a price of $17 to $19 each, in an initial public offering (IPO) that could raise as much as $380 million. The move values the company at about $3.9 billion after its IPO, a smaller number than anticipated by some market participants.
Weibo is owned by Sina Corp and has around 130 million active users per month. Some analysts estimated that the company was worth $5 million to $6 million. According to Sina Finance, Chinese e-commerce giant Alibaba Group Holding Ltd. purchased an 18 percent stake in Weibo from Sina last year, and valued Weibo at $5.86 billion.
The deflated IPO price comes at a time when the micro-blogging service is thought to be losing users to mobile messenger service WeChat, owned by Tencent Holdings, according to reports by the Wall Street Journal.
Despite the smaller number, however, some analysts predict that Weibo's devalued IPO would give investors a more comfortable entry point at purchasing shares.
Weibo will list its common stock on the Nasdaq with the ticker "WB" instead of "SINAWB." The move aims to show that its parent company Sina is focusing heavily on its micro-blogging service.
Advertising and marketing revenue for Weibo nearly tripled to $148.42 million last year. And its total revenue increased from $65.9 million to $188.3 million in 2013.
Weibo is expected to go public this month. After the offering, Sina will hold 56.9 percent of Weibo, while Alibaba will see its stake rise to 32 percent.
Image via Shutterstock.
This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!
Yuyu Chen is an Editorial Intern at ClickZ. Her work has appeared in Local East Village, New York Daily News and Brooklyn Chamber of Commerce website. Yuyu received her M.A. in Business and Economic Reporting from New York University in May, 2013.
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.
August 21, 2014