Qihoo 360 Technology (NYSE:QIHU), which offers a safe web browser and other Internet security products in China, soared 134% in its trading debut on Wednesday, making it the third best first day gain for a US listed IPO in the last 10 years. That puts Qihoo in strong company, with the top two spots held by two other leading Chinese Internet companies: China's #1 search engine Baidu.com (NASDAQ:BIDU) and China's #1 video portal Youku.com (NYSE:YOKU). Baidu.com rocketed 354% in its 2005 debut, while Youku.com jumped 161% in a December 2010 IPO. In fact, four of the top 10 best first gains for US listed IPOs are now held by China-based companies. Content delivery network ChinaCache International (NASDAQ:CCIH) currently holds the #8 spot on the list with a 95% initial gain in its September 2010 offering.
While performance among several US-listed Chinese IPOs over the last year has left much to be desired -- including year-to-date with the prior three Chinese IPOs each trading flat or down, investors have shown strong support for Chinese companies positioned as market leaders, particularly in the country's rapidly-growing Internet sector. Consider recent offerings from the China's largest online bookseller E-Commerce China Dangdang (NYSE:DANG) and major real estate portal SouFun Holdings (NYSE:SFUN), which also rank among the best IPO debuts over the last decade.
Qihoo 360 Technology listed its shares on the NYSE under the symbol QIHU. UBS Investment Bank (NYSE:UBS) and Citi (NYSE:C) served as lead managers on the deal.
Top First Day Gains For US listed Chinese IPOs Since 2001
|Company Name||Symbol||Offer Date||Proceeds |
|First Day |
|Post Bubble |
|Qihoo 360 Technology||QIHU||03/29/11||$176||134%||#3|
|E-Commerce China Dangdang||DANG||12/07/10||$272||87%||#12|
|China Digital TV||STV||10/04/07||$192||75%||#19|