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ChinaCache International (CCIH), a China-based internet content and application delivery services provider priced its IPO on 30th September, 2010 at $13.9 per ADS above the estimated range of $10-$12 per ADS and generated a first day return of 95.3%, being the biggest US IPO rally in three years.

Business Overview (from prospectus)

We are the leading provider of Internet content and application delivery services in China, accounting for 53% market share in terms of revenues in 2009, according to iResearch. We provide a portfolio of services and solutions to businesses, government agencies and other enterprises to enhance the reliability and scalability of their online services and applications and improve end-user experience. Our nationwide service platform, which consists of our network, servers and intelligent software, is designed to handle planned and unplanned peaks without significant upfront and ongoing capital outlay and other investments on the part of our customers.

Offering: 6.1 million ADS at $13.90 per ADS. Net proceeds of approximately $15.0 million wil l be used for research and development and approximately $27.6 million to fund capital expenditures for network and other equipment.

Lead Underwriters: BofA Merrill Lynch (BAC), Deutsche Bank Securities (DB)

Financial Highlights:

Net revenues increased by 28.9% from RMB132.2 million for the six months ended June 30, 2009 to RMB170.3 million (US$25.1 million) for the six months ended June 30, 2010...Cost of revenues increased by 17.1% from RMB101.2 million for the six months ended June 30, 2009 to RMB118.5 million (US$17.5 million) for the six months ended June 30, 2010...Operating expenses increased by 111.9% from RMB40.3 million for the six months ended June 30, 2009 to RMB85.4 million (US$12.6 million) for the six months ended June 30, 2010...sales and marketing expenses increased by 45.0% from RMB19.1 million for the six months ended June 30, 2009 to RMB27.7 million (US$4.1 million) for the six months ended June 30, 2010...Research and development expenses increased by 21.3% from RMB8.5 million for the six months ended June 30, 2009 to RMB10.3 million (US$1.5 million) for the six months ended June 30, 2010...Operating loss increased by 260.7% from RMB9.3 million for the six months ended June 30, 2009 to RMB33.5 million (US$4.9 million) for the six months ended June 30, 2010... Net loss increased by 9.3% from RMB22.1 million for the six months ended June 30, 2009 to RMB24.2 million (US$3.6 million) for the six months ended June 30, 2010...

Competitors

In China, we primarily compete with domestic content and application delivery service providers. Our primary domestic competitors include ChinaNetCenter, Dnion Technology and 21 Vianet. We believe that there are no foreign competitors with a significant presence in the content and application delivery services market in China partly due to the regulatory barriers in China's telecommunications sector. As China represents a potentially lucrative market for foreign competitors, some foreign providers may seek to enter the China market. We believe we have accumulated a deep understanding of the requirements of China's content and application delivery services market through our extensive operational experience and have developed a comprehensive suite of services and solutions tailored to the unique characteristics of the Internet market in China.

Additional Resources:

Source: ChinaCache International: Biggest IPO Rally in 3 Years