Sina Weibo Sees Shares Priced Below Expectations In US IPO

Billed as China's Twitter service, Sina Weibo has sold fewer shares than expected in its US-based IPO, with the share price leaving much to be desired. The news reflected ongoing troubles in the Nasdaq index.

Ahead of its NASDAQ listing on Wall Street, China\'s Twitter equivalent Sina Weibo sold 16.8 million US depository shares at $17 (12.3 euros) each, raising $ 258.6 million, AFP new agency reported Thursday.



The Beijing-based firm saw its sales come in at well below the 20 million shares and $340 million it had been aiming for.



Analysts argued the figures reflected a cautious mood after the tech-weighed NASDAQ index tumbled for more than three weeks, with the pricing of Weibo shares being at the lower end of the $17-19 range the social media site had been hoping to offer its stock.



Uncertain potential



Sina Weibo was launched in 2009 to provide services akin to Twitter which is banned in China. Last year, the firm tripled its revenues to almost $188 million, while still incurring losses to the tune of $38 million. It's reported to now have about 144 million active users.



But Weibo has been facing questions about the growth potential of its user base as well as rising competition from domestic rivals including Tencent's WeChat, an instant messaging platform allowing users to send text, photos, videos and voice messages over mobile devices.



Chinese tech companies are increasingly eager to go public in the US. According to media reports, the country's huge Alibaba online retailer is going to present its US IPO project next Monday. It could become the biggest tech IPO of all times, even eclipsing Facebook.



hg/hc (AFP, Reuters)