Weibo valued at $3.46 billion after bottom-end Nasdaq IPO pricing

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By Reuters | Updated: 17 April 2014 15:26 IST
China's Weibo Corp will be valued at a lower-than-expected $3.46 billion when it goes public on the Nasdaq on Thursday, amidst concerns about the microblogging service's slowing user growth and the country's highly censored media environment.

The Twitter-like microblogging service, owned by web portal Sina Corp, sold 16.8 million American Depositary Shares (ADSs) for $17 apiece, raising $285.6 million, an underwriter told Reuters.

The company had planned to sell 20 million ADSs at between $17 and $19 per share.

Weibo will add to the list of Chinese companies flocking to the U.S. IPO market in their biggest numbers since 2010, drawn by soaring valuations for tech start-ups.\

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(Also see: China's Weibo looking to raise $500 million with US IPO)

Chinese e-commerce giant Alibaba Group, which invested $586 million for an 18 percent stake in Weibo, is expected to file for a widely anticipated share sale as early as Monday, according to sources.

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Alibaba rival JD.com filed for a $1.5 billion U.S. listing in January.

Since its launch in 2009, Weibo has become the country's water cooler, a place where nearly 600 million Internet users opine on everything from Korean soap operas to China's latest political intrigue.

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Weibo had 143.8 million monthly active users in March.

The company's revenue almost tripled to $188.3 million in 2013 from a year earlier, while net loss narrowed to $38.1 million from $102.5 million.

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Weibo's shares are expected to begin trading under the symbol "WB" on the Nasdaq on Thursday.

Goldman Sachs (Asia) LLC and Credit Suisse were the lead underwriters to the offering.

© Thomson Reuters 2014

 

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Further reading: Alibaba, Internet, Weibo
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