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Weibo files for IPO in US

2014-04-07 08:55:00| Telecompaper Headlines

(Telecompaper) Chinese messaging service Weibo has filed with the US Securities and Exchange Commission for an initial public offering of shares. The company plans to sell up to 23 million shares at a maximum price of USD 19 each, giving it total proceeds of USD 437 million. An exact price range will be set at a later date. The offering consists of 20 million Class A shares converted into American Depositary Shares, plus an over-allotment of 3 million shares. After the issue, Sina will still hold 56.9 percent of outstanding shares and 79.9 percent of voting rights at Weibo. Sina will receive much of the proceeds from the IPO in repayment of loans, while Weibo will use the remainder to increase its marketing and employee retention incentives. The messaging service claims over 129 million monthly active users, of which 70 percent access the site from a mobile phone. It generated USD 188 million in revenues in 2013, versus USD 66 million a year earlier, while its net loss narrowed to USD 38 million from USD 102 million in 2012. 

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Category:Telecommunications

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