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Sina Weibo files for $500m US IPO
Updated: 2014-03-15 15:19
( Agencies)
A Sina Weibo booth displays at a conference on September 24, 2013 in Beijing. [Photo / Image China]
Twitter-like messaging service Weibo Corp filed on March 14 to raise $500 million via a US initial public offering, as Chinese companies flock to the American market in record numbers to take advantage of soaring valuations.
Weibo, owned by Sina Corp, becomes the latest Chinese Internet giant to tap US markets, following on the heels of search service Baidu and its own corporate parent. Alibaba, which owns a stake in Weibo, is expected to raise about $15 billion in New York this year, in the highest-profile Internet IPO since Facebook's in 2012.
Weibo increased ad revenue by 163 percent to $56 million in the final three months of 2013. Overall revenues leapt almost three-fold to $188.3 million in 2013, from $65.9 million in 2012. And its net loss shrank to $38.1 million in 2013 from $102.5 million the previous year.
But its user growth is at risk of tailing off after three years of explosive expansion, as newer messaging apps such as Tencent Holdings Ltd's WeChat draw users away.
However, Weibo said the number of its daily users had risen 36 percent to 61.4 million as of the end of December, from the same time a year before.
Weibo hired Goldman Sachs and Credit Suisse to manage its US debut, which it said would boost brand recognition and help retain talent.
Its proposed $500 million target is an estimate worked out solely for the purposes of calculating registration fees.
Alibaba picks U.S. for IPO; in talks with six banks for lead roles
BY ELZIO BARRETO AND DENNY THOMAS
HONG KONG Sun Mar 16, 2014 6:42am EDT
(Reuters) - Chinese e-commerce giant Alibaba Group Holding Ltd has decided to hold its long-awaited IPO in the United States and is in discussions with six banks to underwrite the deal, in what is set to the most high-profile public offering since Facebook Inc's listing nearly two years ago.
Alibaba said in a statement on Sunday it had decided to begin the U.S. IPO process, ending months of speculation about where it would go public.
Separately, sources told Reuters that Alibaba is in discussions with Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs Group, J.P. Morgan, and Morgan Stanley for lead underwriting roles.
Most of the six banks are to set to win the coveted role of joint global coordinator, added the sources, who were not authorized to discuss the matter publicly.
Analysts estimate the Hangzhou, China-based company has a value of at least $140 billion, and the IPO proceeds could exceed $15 billion, Reuters previously reported. The deal would be a huge coup for the six banks, as it would yield an estimated $260 million in underwriting fees, assuming 1.75 percent commission, and catapult them in league table rankings.
Alibaba declined to comment on the banks working on the deal. The banks mentioned in the report either declined comment or did not respond to Reuters' requests for a comment.
"This will be a huge deal, bigger than what people were anticipating," one person familiar with the process said, adding that the IPO was expected to be kicked off "very soon".
Reuters reported on Saturday that Alibaba is planning a U.S. IPO in the third quarter, with a filing of documents expected as early as April.
BILLIONAIRE MA
Alibaba, whose platforms handle more goods than EBay Inc and Amazon.com Inc combined, was founded in 1999 by former English teacher Jack Ma and 17 other people. It has grown from a startup in Ma's apartment to a behemoth with offices around the world and more than 20,000 employees.
The listing will be closely watched by Alibaba's two largest shareholders - Yahoo Inc, which owns 24 percent, and Japan's Softbank Corp, which controls 37 percent. Alibaba's founders and some senior managers jointly own about 13 percent of the company.
Yahoo has said it plans to trim its stake in Alibaba through the IPO. It initially invested in Alibaba in 2005.
Alibaba's decision to go to the United States is a blow to the Hong Kong stock exchange, which was initially the company's preferred venue for the IPO.
Alibaba also said in a statement on its corporate news Web site it might consider extending its public status to Chinese capital markets in future in order for investors there to be able to share in its growth.
Alibaba, which controls about 80 percent of the country's e-commerce, had been in discussions with the Hong Kong stock exchange and the Securities and Futures Commission since last year about a listing, but the island city's regulators blocked its proposal as it violated the "one-share-one-vote principle".
Alibaba's executive vice chairman Joe Tsai upped the rhetoric against Hong Kong when he told Reuters last week that the firm would not change its partnership structure in order to list on the Hong Kong stock exchange.
After an initial rebuff, Alibaba and the Hong Kong regulators were back at the negotiating table late last year, to find a solution to the problem. While the Hong Kong Exchanges and Clearing Ltd has initiated a review of its listing rules to accommodate more flexible structures, any change to the existing rules would take months.
"We wish to thank those in Hong Kong who have supported Alibaba Group," Alibaba said in its statement.
"We respect the viewpoints and policies of Hong Kong and will continue to pay close attention to and support the process of innovation and development of Hong Kong."
(Reporting by Elzio Barreto and Denny Thomas; Editing by Robert Birsel)
Alibaba picks U.S. for IPO; in talks with six banks for lead roles| Reuters
Updated: 2014-03-15 15:19
( Agencies)
Twitter-like messaging service Weibo Corp filed on March 14 to raise $500 million via a US initial public offering, as Chinese companies flock to the American market in record numbers to take advantage of soaring valuations.
Weibo, owned by Sina Corp, becomes the latest Chinese Internet giant to tap US markets, following on the heels of search service Baidu and its own corporate parent. Alibaba, which owns a stake in Weibo, is expected to raise about $15 billion in New York this year, in the highest-profile Internet IPO since Facebook's in 2012.
Weibo increased ad revenue by 163 percent to $56 million in the final three months of 2013. Overall revenues leapt almost three-fold to $188.3 million in 2013, from $65.9 million in 2012. And its net loss shrank to $38.1 million in 2013 from $102.5 million the previous year.
But its user growth is at risk of tailing off after three years of explosive expansion, as newer messaging apps such as Tencent Holdings Ltd's WeChat draw users away.
However, Weibo said the number of its daily users had risen 36 percent to 61.4 million as of the end of December, from the same time a year before.
Weibo hired Goldman Sachs and Credit Suisse to manage its US debut, which it said would boost brand recognition and help retain talent.
Its proposed $500 million target is an estimate worked out solely for the purposes of calculating registration fees.
Alibaba picks U.S. for IPO; in talks with six banks for lead roles
BY ELZIO BARRETO AND DENNY THOMAS
HONG KONG Sun Mar 16, 2014 6:42am EDT
(Reuters) - Chinese e-commerce giant Alibaba Group Holding Ltd has decided to hold its long-awaited IPO in the United States and is in discussions with six banks to underwrite the deal, in what is set to the most high-profile public offering since Facebook Inc's listing nearly two years ago.
Alibaba said in a statement on Sunday it had decided to begin the U.S. IPO process, ending months of speculation about where it would go public.
Separately, sources told Reuters that Alibaba is in discussions with Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs Group, J.P. Morgan, and Morgan Stanley for lead underwriting roles.
Most of the six banks are to set to win the coveted role of joint global coordinator, added the sources, who were not authorized to discuss the matter publicly.
Analysts estimate the Hangzhou, China-based company has a value of at least $140 billion, and the IPO proceeds could exceed $15 billion, Reuters previously reported. The deal would be a huge coup for the six banks, as it would yield an estimated $260 million in underwriting fees, assuming 1.75 percent commission, and catapult them in league table rankings.
Alibaba declined to comment on the banks working on the deal. The banks mentioned in the report either declined comment or did not respond to Reuters' requests for a comment.
"This will be a huge deal, bigger than what people were anticipating," one person familiar with the process said, adding that the IPO was expected to be kicked off "very soon".
Reuters reported on Saturday that Alibaba is planning a U.S. IPO in the third quarter, with a filing of documents expected as early as April.
BILLIONAIRE MA
Alibaba, whose platforms handle more goods than EBay Inc and Amazon.com Inc combined, was founded in 1999 by former English teacher Jack Ma and 17 other people. It has grown from a startup in Ma's apartment to a behemoth with offices around the world and more than 20,000 employees.
The listing will be closely watched by Alibaba's two largest shareholders - Yahoo Inc, which owns 24 percent, and Japan's Softbank Corp, which controls 37 percent. Alibaba's founders and some senior managers jointly own about 13 percent of the company.
Yahoo has said it plans to trim its stake in Alibaba through the IPO. It initially invested in Alibaba in 2005.
Alibaba's decision to go to the United States is a blow to the Hong Kong stock exchange, which was initially the company's preferred venue for the IPO.
Alibaba also said in a statement on its corporate news Web site it might consider extending its public status to Chinese capital markets in future in order for investors there to be able to share in its growth.
Alibaba, which controls about 80 percent of the country's e-commerce, had been in discussions with the Hong Kong stock exchange and the Securities and Futures Commission since last year about a listing, but the island city's regulators blocked its proposal as it violated the "one-share-one-vote principle".
Alibaba's executive vice chairman Joe Tsai upped the rhetoric against Hong Kong when he told Reuters last week that the firm would not change its partnership structure in order to list on the Hong Kong stock exchange.
After an initial rebuff, Alibaba and the Hong Kong regulators were back at the negotiating table late last year, to find a solution to the problem. While the Hong Kong Exchanges and Clearing Ltd has initiated a review of its listing rules to accommodate more flexible structures, any change to the existing rules would take months.
"We wish to thank those in Hong Kong who have supported Alibaba Group," Alibaba said in its statement.
"We respect the viewpoints and policies of Hong Kong and will continue to pay close attention to and support the process of innovation and development of Hong Kong."
(Reporting by Elzio Barreto and Denny Thomas; Editing by Robert Birsel)
Alibaba picks U.S. for IPO; in talks with six banks for lead roles| Reuters