Qihoo 360 Raises $175.6 Million in IPO, 16% More Than Sought
Stock Chart for Qihoo 360 Technology Co Ltd (QIHU)
Qihoo 360 Technology Co., the Chinese provider of computer anti-virus products and Web browsers, raised $175.6 million in its U.S. initial public offering, 16 percent more than originally sought.
The Beijing-based company sold 12.1 million American depositary receipts at $14.50 each, compared with a proposed range of $10.50 to $12.50, according to a filing with the Securities and Exchange Commission and data compiled by Bloomberg. Proceeds will be used for product development and acquisitions.
Qihoo 360 is one of four companies aiming to complete U.S. IPOs this week, marking the biggest weekly number of deals since the March 11 earthquake in Japan caused global markets to slump and threatened a recovery in new-share sales. U.S. IPOs this year have raised more than triple the $3.8 billion in the first quarter of 2010, data compiled by Bloomberg show.
The midpoint price of $11.50 valued Qihoo 360 at about 25 times 2010 sales, more than five times the average of 4.7 among 26 U.S.-traded Chinese Internet companies as of market close yesterday, data compiled by Bloomberg show.
The company’s biggest customer is Mountain View, California-based Google Inc. (GOOG), which pays Qihoo 360 in exchange for referral of Internet search traffic, the prospectus said. Google accounted for 21 percent of Qihoo’s revenue in 2010, according to the filing.
Investors in Qihoo 360 include venture capital firms Highland Capital Partners of Lexington, Massachusetts, and Menlo Park, California-based Sequoia Capital, according to the share- sale prospectus.
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