Chinese social network Renren has filed to sell 53.1 million American depositary receipts (ADRs) at between US$9 and US$11 each in an IPO on the New York Stock Exchange, according to a US Securities and Exchange Commission notice.
This would allow the…
Chinese social network Renren has filed to sell 53.1 million American depositary receipts (ADRs) at between US$9 and US$11 each in an IPO on the New York Stock Exchange, according to a US Securities and Exchange Commission notice.
This would allow the company to raise as much as US$584.1m.
The company said it expected to receive net proceeds of approximately US$507.9m from the offering.
In a release, it said: “We intend to use the net proceeds from this offering and the concurrent private placements as follows: (i) approximately US$180m for investing in our technology and research and development activities; (ii) approximately US$180m for expanding our sales and marketing activities; and (iii) the balance for other general corporate purposes, including potential strategic acquisitions and investments.”
The company said it had approximately 117 million activated users as of 31 March 2011. It also said that its total net revenues increased to US$76.5m in 2010 from US$46.7m in 2009, and posted a net loss of US$61.2m last year compared with US$68.3m the year before.
The banks managing the IPO are Credit Suisse, Deutsche Bank and Morgan Stanley.
The news come after speculation over the last few months over if/when US social networking sites are planning IPOs.
In January, LinkedIn filed a registration document for an IPO with the SEC.
Meanwhile, Facebook is reportedly planning to go public or disclose details of its finances by April 2012.
