Sina Files $500m IPO in US
Sina, the Chinese internet media company with four primary business including Sina Weibo, 'China's Twitter' has filed documents to list on a US exchange in the coming weeks/months. With all the fanfare surrounding social media around the world, this filing has been highly anticipated. Clearly the performance of other Chinese internet companies like BIDU (the 'Google of China') and Tencent has rewarded western investors for their faith in the growth coming from China's massive internet opportunity.
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Sina's stock has been under heavy pressure however as there is concern they may be losing ground to the competition, notably Tencent. After touching nearly $90/share in late 2013 the stock has been knocked down and closed today at $64.59(-1.7%) before the announcement, but popped in the aftermarket on the news. Despite growth of over 36% in subscribers and tripling revenues at Weibo in 2013 it may be tough to stave off arguably the most domain diversified internet company in China.
We see oversold conditions at present and decent technical support for the stock at $60.
We will continue to keep you posted on the developments.
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