'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.

By MSN Money Partner 18 hours ago
By CNBC.com staff

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).A woman views the Chinese social media website Weibo at a cafe in Beijing

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.

More from CNBC
4 hours ago
"Twitter of China" this must be a joke censored social media got to love it! 
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
100 character limit
Are you sure you want to delete this comment?


Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

Trending NOW

What’s this?


[BRIEFING.COM] Equity indices continue hovering near their flat lines with the Nasdaq (+0.2%) trading a bit ahead of the Dow Jones Industrial Average (-0.1%) and S&P 500 (+0.1%).

In addition to drawing strength from biotechnology, the tech-heavy Nasdaq has received noteworthy support from microchip manufacturers after SanDisk (SNDK 83.65, +7.80) and Taiwan Semiconductor (TSM 20.70, +0.55) reported strong quarterly results. The two hold respective gains of 10.4% and ... More