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China's Weibo IPO below expectations, raises $356.9m: report

Published on Apr 17, 2014 11:58 AM
A man walks past the office entrance of Sina Weibo, widely known as China's version of Twitter, in Beijing on April 16, 2014. -- PHOTO: AFP

BEIJING (AFP) - Sina Weibo has sold fewer shares than expected in its United States initial public offering (IPO), which has been priced below expectations, a report said Thursday, ahead of its listing which takes place after sell-offs on Wall Street.

The Beijing-based firm, often described as China's version of Twitter, sold 16.8 million US depositary shares at US$17, raising US$285.6 million (S$356.9 million) before the sale of any additional shares to underwriters, Dow Jones Newswires said, quoting two people familiar with the deal.

Those figures are well below the 20 million shares and US$340 million which it had been aiming for - reflecting a cautious mood after the tech-weighted Nasdaq index tumbled for more than three weeks.

The pricing is at the low end of the US$17-US$19 range at which the social networking company had been expected to offer its shares.

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