Weibo, China’s Twitter, Has Been Valued to Have an IPO of $4bn.
China’s Twitter like company, Weibo has recent set a goal for their initial public offering somewhere around $17 and $19, placing it on the course to raise an amount of $437 million and total up to a $3.9 billion valuation.
The social media site, which has over 129 million people use it every month, has also confirmed that it will be floating with New York’s Nasdaq Stocking exchange under the moniker “WB”.
Weibo had reveal during the previous month that it was planning to float within the US, following the same procedure as its rival Twitter, which has allowed it to make its grand market debut during the last November. The San Francisco business had defied critics by going public with its valuation totaling $14.2 billion, despite the fact it doesn’t make any kind of profit. This figure had went on to rise even more to nearly $40 billion as its shares increase, although it has decreased back to $24.3 billion ever since then.
Weibo’s ambition seem to be far more modest by comparison, The Chinese company only has half the number of users when it come to Twitter, and during the previous year, it had managed to only generate up to $188 million in revenues. Some analysts have spoken on Weibo value possibly being low as $3 billion, but many firm have placed it at a higher value of $8 billion.
While the company is only allowed to operate within China as long as it agrees to censor user post, Weibo has already gained a huge following from the country and reported to have continued growth at its current pace of 20 million new users joining up every month.
Weibo had began to introduce the use of adverts into its social network sometime in 2012, in order to use the popularity to increase its revenue, but as of recently it has ran into some heavy criticism from its users, who have claimed it has become clogged with far too many promotional material.
Weibo has not set a date for the flotation at the moment, this will show the social networking separating away from its parent company Sina, which owns a 79pc stake on the business. The rest is currently owned by business such as the Chinese online retailing giant, Alibaba, which is also currently preparing for its own IPO later this year.