21Vianet Group Prices Upsized IPO at $15, Above Expected Range

| About: 21Vianet Group (VNET)

21Vianet Group (NASDAQ:VNET), a largest carrier-neutral Internet data center services provider in China, raised $195 million yesterday by offering 13 million ADSs at $15, above an upwardly revised range of $12 to $13. The company had originally filed to sell 11.5 million ADSs at a price of $10-$12 on April 6. The $195 million in gross IPO proceeds was $68 million (or 54%) greater than its originally planned deal size. At $15, the company commands a market value just under $900 million, or more than 10x its 2010 sales. 21Vianet Group will begin trading today on the NASDAQ under the symbol VNET. Morgan Stanley (NYSE:MS), Barclays Capital (NYSE:BCS), and J.P. Morgan (NYSE:JPM) acted as lead managers on the deal.

21Vianet is one of a growing list of Chinese Internet IPOs to see strong interest from US investors, and follows on the heels of the impressive debut of Qihoo 360 Technology (NYSE:QIHU) on March 30. Qihoo 360's first day return of 134% was the third best performance for a US-listed IPO over the last 10 years. Two additional Chinese Internet companies are scheduled to complete IPOs over the next two weeks: mobile Internet security provider NetQin (NYSE:NQ) and the highly-anticipated offering from China's leading social network Renren (NYSE:RENN). If successful, we suspect more Chinese IPOs could be added to the IPO calendar in the coming weeks.

Other recent high-flying Chinese Internet IPOs include leading online bookseller E-Commerce China Dangdang (NYSE:DANG) and China's #1 online video portal Youku.com (NYSE:YOKU), dubbed the Chinese Amazon.com and Youtube.com, respectively. Both companies went public in December 2010. Dangdang is currently trading 50% above its offer price, while Youku.com is now up an incredible 402%.