The social network Renren had its IPO today, debuting at $14 each. The stock increased as much as 25% during the day, showing strength and that there is a lot of demand for the shares. Renren is similar to Facebook, and based in China. The ticker symbol is RENN. The site has over 115 million users, which makes it one of Facebook’s closest competitors. Facebook currently has about 600 million registered users. This may be an interesting company to study in anticipation of Facebook’s rumored 2012 IPO. Renren plans to raise over $550 million through the offering. It makes you think what Facebook would be able to raise…if you base the number by users, then Fbook would be looking at about $3 billion!
Facebook has already proven it can generate revenue through advertising, games, and other marketing ploys. The company is run by a very smart CEO, which will also be counted when valuing the company. Facebook has quietly extended it tentacles out recently into online video rental and I’m sure has a lot more in the works.
I suppose for a company that is already valued at $50 billion, raising $3B more may not seem like much, but it is, it’s huge.