Sina Weibo officially traded on Nasdaq

The opening price of 16.27 U.S. dollars, more than 17 U.S. dollars/share of the issue fell 4.3%, but then higher, close to 20.24 U.S. dollars/shares, the first day than the IPO price rose 19.06%.

Weibo has issued a total of 16.8 million U.S. depository shares, while awarding underwriters a 30-day option, with the highest option to oversubscribed 2.52 million ads from Weibo, with a total equity of 199 million shares after the IPO. Based on the price of $17/share, Weibo has a market capitalisation of $3.388 billion, less than half the company's 70~80 billion-dollar target earlier this year, At the same time, the scale of financing from the estimated 328 million dollars to 286 million U.S. dollars, according to Weibo itself, 250 million dollars will be used to repay the parent company Sina and its shareholders loans. Goldman Sachs (Asia) and the Swiss Credit Securities (US) company are the main underwriters of the microblog IPO.

The IPO price range, set at $17 trillion ~19 USD/share, is priced at a low of $17/share, in connection with the continuing slump in the U.S. technology IPO market in recent days. Since the beginning of last week, the vast majority of IPOs in the US have been priced below the price range set during the roadshow, and many IPOs are not particularly ideal for trading. Chao said that the microblogging market time is not good, but it is important to see whether the company has continued to develop plans and trends, the listing is only the beginning of the microblog.

In the next plan of Weibo, the cooperation with Ali is the most important, the two sides will build a mobile business platform. Weibo's ad revenue for the fourth quarter of 2013 was 56 million dollars, with half of the advertising costs coming from Alibaba. Chao revealed that micro-Bo, Ali deep cooperation in the platform between the interaction, data cooperation and mobile payment cooperation. By working with Taobao and Alipay, Weibo and Ali will work together to create a mobile-side "social business system", the marketing system of the mobile internet age. Previously, micro-blog issued a "micro-bo Pay", by Alipay in the back-end to provide technical support, in this way, businesses, users can complete the information flow in the "marketing-transaction-pay" closed loop.

Sina Group's shareholding in Weibo will drop from 77.6% to 56.9% following the launch of its microblog business. Ali's stake will rise from 19.3% to 32%. But Weibo is also a subsidiary of Sina Group, which has an absolute holding power and voting power.

Microblogging business before the listing, has been and Sina in product development, sales, market systems, operations and other aspects of the distinction, so Weibo as an independent company listed, the remaining business will not have a new impact on Sina. Weibo listed, Sina Group will be another piece of business-Sina portal to do restructuring and strategic planning, mainly in 3 directions: Mobile, video, vertical.

As of March this year, micro-Bo live users 144 million, year-on-year growth of about 34%, daily live users 66.6 million, the year-on-year growth of 37%. At present, there are more than 80,000 government agencies and officials Weibo account, 70多万个 personal authentication account and 40多万家 Enterprise authentication account.

In the first quarter of 2014, Weibo total revenue and advertising revenue both fell, loss scale expansion: Weibo total revenue of 67.5 million U.S. dollars, an increase of 161%, the chain down 5.5%; among them, advertising revenue 51.9 million U.S. dollars, the chain down 7.3%, non-advertising revenue (including data licensing service fees, as well as page tours, Members and other value-added services fees) 15.6 million U.S. dollars, the chain growth narrowed to 1.3%.

Weibo first achieved quarterly profits in the fourth quarter of last year, operating at more than $3 million trillion. In the first quarter of 2014, the net loss of 47.4 million U.S. dollars, compared with a year earlier in the 19.2 million U.S. dollar net losses, the scale of the loss increased by about 147%. The official explanation for this is that seasonal operations, the 2014 is the off-season for advertising, and revenue is still in line with expectations.