$500 million US IPO planned by Sina Weibo
Close to the heels of Baidu venturing into the US market, another Chinese company is seeking to raise funds through initial public offering in the United States. Weibo, owned and operated by Sina Corporation and the Chinese equivalent of Twitter, on Friday filed for a $500 million IPO at the New York Stock Exchange. However, the firm declined to reveal the price range of the shares or the number of shares it intends to place on the market.
Based on the information provided at the time of filing for the IPO, Weibo had generated an income of $188 million last year and had a little over 129 million active users. At the time of filing, the company also said that Weibo, which is like the miniature version of the Chinese society, has all types of users, ranging from the common man to public figures and celebrities and leading names in the fields of charity, government organizations, businesses and media.
Counting 500 million users and still increasing by the day, the internet market in China has become the number one in the world. Domestic online companies in China are witnessing a significant growth in recent times because microblogging sites such as Twitter and social networking sites such as Facebook are banned in this country.
Weibo, in particular, is one of the most popular services today because it allows people to share information without filtering any of it.
With people flocking to sites such as Weibo that offers messaging services and many more facilities, these companies are raking in more profits by the year. The revenue at Weibo witnessed a three-fold jump in 2013 as compared to 2012. Considering that many companies are now seeking advertising on Weibo, the trend of increased revenue will not cease anytime soon.