|Shares in Chinese classified website 58.com gain 41pc on New York debut
Online marketplace 58.com Inc, a classified site that serves local merchants and consumers in about 380 cities, began trading on the New York Stock Exchange Thursday under the ticker symbol WUBA.
The company announced that it has priced its initial public offering of 11 million American Depositary Shares, each representing two Class A ordinary shares of the company, at US$17 per ADS raising US$187 million, Xinhua reports.
"There is a huge demand of life services information in China. The United States has the most mature capital market and its local information service is also the best in the world," Yao Jinbo, chairman and chief executive officer of 58.com, told Xinhua.
“e won't change our plan after the IPO. Now we focus on Wi-Fi market. We aims at Wi-Fi users next and hopefully the number of our customers using Wi-Fi will surpass that who use personal computers," Yao said, We'll provide them best service and experience. Secondly, we will try to bring in more profits. Those two are our major goals for the near future."
Shares of 58.com skyrocketed 41.88 percent to close at US$24.12 a share after its first day of trading.
The company operates the largest online marketplace serving local merchants and consumers in China, as measured by monthly visitors on both its website www.58.com and its mobile applications, according to an industry report by the third-party research firm iResearch Consulting Group.
Its online network provides diverse content categories, including housing, jobs, used goods, automotive, pets, tickets, and yellow pages, among others.
58.com, founded in December 2005 and headquartered in Beijing, is basically China's for-profit version of Craig's List in the United States.
The company generates revenues primarily from memberships and online marketing services, according to the company's IPO filing with the US Securities and Exchange Commission.
The company's filing to the SEC showed it earned a net income of 8.5 million dollars for the third quarter of this year on total revenues of US$41.6 million.