Qihoo Tech: Behind the IPO Moonshot

IPOdesktop submits:

On Friday, April 1, 2011 Qihoo 360 Technologys (QIHU) closing market cap was $3.5 billion, up 159% from the price range mid-point market cap on Monday of $1.35 billion, at an $11.50 share price. On Wednesday, QIHU IPOd at $14.50 and later in the day almost touched $36. The stock closed Friday at $29.50

Perhaps QIHU will ask how their underwriters could make such a big pricing error. The answer is supply and demand, of course.

Moonshots seldom, if ever happen, with IPOs in the $500 million and higher range. Thats because with larger IPOs, investment bankers can more easily judge institutional demand. QIHUs IPO on Monday, at the price range mid-point, was only $139 million, on the smaller side.

Three previous China deals are still trading below their IPO prices, Zuoan Fashion Ltd. (ZA), Trunkbow International Holdings Ltd. (TBOW) and BCD Semiconductor Manufacturing Ltd. (BCDS). Plus, there have been


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