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Chinese companies are flocking to US for IPOS (2)

By  Cai Xiao  (China Daily)    10:46, February 27, 2014
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Higher share prices led to renewed confidence among investors. At the same time, Chinese companies became more positive about conducting IPOs in the US.

Six Chinese companies listed there last year, raising $720 million, compared with just two IPOs in 2012.

That reflected a major decline from 2010, when 34 Chinese companies went public in the US.

Global investors are now paying closer attention to the quality of Chinese companies and conducting intensive due diligence. That's in marked contrast to 2010, when almost all Chinese companies were popular, according to a report by the NYSE.

The US market is particularly attractive for Chinese Internet companies, and their performances in the capital markets there have been "pretty good", said Ethridge.

The six US-listed companies last year were all in the Internet sector.

As of the end of 2013, the individual market capitalization of more than half of the Chinese Internet companies listed in US exceeded $1 billion.

Chinese companies planning IPOs in the US have become more cautious in choosing banks, accounting firms and law firms for their IPOs, said the report.

The micro-blogging site Weibo is reportedly heading for a market listing in New York with a valuation of as much as $8 billion.

Nasdaq-listed Sina Corp, which owns 71 percent of Weibo, is looking to raise more than $500 million through the deal, which is expected to take place in the second quarter

Jumei.com, an e-commerce company that sells cosmetics, is planning a US IPO and will seek to raise about $500 million.

Another e-commerce site, JD.com, recently filed documents indicating plans to raise $1.5 billion in a New York offering.



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(Editor:WangXin、Gao Yinan)

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