Qunar is just the latest Chinese company to complete a better-than-expected IPO. And it s poised for even greater growth as China's travel market matures.
Qunar, which runs China’s most popular mobile travel app, sold 11.1 million American depository receipts at $15 apiece, according to a term sheet obtained by Bloomberg News. That’s above a marketed range of $12 to $14, which Qunar had already raised from an initial target of $9.50 to $11.50, according to filings from the Beijing-based company.
The share sale is the second U.S. IPO by a Chinese company this week to price above its marketed range, underscoring investor confidence even as Muddy Waters LLC said a Chinese security software maker had inflated sales. 58.Com Inc., which runs a Craigslist-like online marketplace, surged 41 percent on its first day of trading yesterday after raising $187 million.
The four Chinese firms that completed U.S. IPOs this year have gained an average 31 percent, according to data compiled by Bloomberg. 58.Com priced its sale of 11 million ADRs at $17 apiece, higher than its initial target range of $13 to $15, which was later raised to $15 to $16.
Qunar’s sale is the second-biggest U.S. IPO by a Chinese company this year, after 58.Com, the data show. Web retailer LightInTheBox Holding Co. raised $91 million in June, followed by China Commercial Credit Inc. and Montage Technology Group Ltd.
NQ Mobile Inc., which raised $89.1 million in a U.S. IPO in May 2011, inflated its revenue, short seller Carson Block’s Muddy Waters said in an Oct. 25 report. While NQ Mobile jumped 18 percent yesterday, the stock is still down 37 percent from its last closing price before the report.
Baidu, operator of China’s largest search engine, paid $306 million in 2011 for a majority stake in Qunar to tap the country’s growing travel market. The travel site’s search coverage includes about 1,250 travel agencies, 125,000 flight routes and more than 468,000 hotels, according to its website.
Editors: Ben Scent and Philip Lagerkranser.
To contact the reporter on this story: Fox Hu in Hong Kong at firstname.lastname@example.org. To contact the editor responsible for this story: Philip Lagerkranser at email@example.com.
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