'Twitter of China' set for Thursday IPO in US
The company is bleeding money like crazy, but it's still likely to be valued at about $3.9 billion.
Chinese company Weibo -- the name translates to "microblog" -- is scheduled to start trading on the Nasdaq Composite Index ($COMPX) Thursday.
Some observers expect the so-called "Twitter of China" to be an IPO smash. This despite the fact that the company had a loss of more than $47 million in the first quarter of 2014, more than twice the loss it had in the same time period in 2013.
Still the company expects the 20 million shares (ticker symbol "WB") offered to be priced between $17 and $19, which would value the company at about $3.9 billion. Bloomberg noted that would make it half as valuable as Twitter (TWTR).
The company was founded in 2010, and has 129.1 million active monthly users in 190 countries, according to its recent SEC filing. The same release says that the company has "become a cultural phenomenon" that has had a "profound social impact" in China.
The appetite for Chinese tech IPOs appears healthy on U.S. exchanges, with Alibaba -- which Yahoo (YHOO) owns a substantial stake in -- to be one of the largest IPOs in history when it debuts later this year.
This despite a general pullback in the tech sector, and well-known risks in investing in some Chinese IPOs.
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