Seeking Alpha

Chinese classifieds site 58.com sets IPO price range of $13-$15

  • The price range translates into a valuation range of $1.01B-$1.17B for 58.com (WUBA), whose leading position in the Chinese online classifieds market has fueled comparisons to Craigslist. 11M shares are being sold; Morgan Stanley, Citi, Pac Crest, and Credit Suisse are underwriting. (S-1)
  • 58.com allows users to post on its site and apps for free (like Craigslist), and monetizes them via ad services. The company had 1H revenue of $58.8M (+51% Y/Y), and posted net income of $285K after losing $19.3M a year earlier. Sales/marketing spend managed to drop 5% Y/Y to $40M, but R&D spend rose 53% to $11.8M.
  • Monthly unique visitors averaged 129.7M in Q2, active merchants totaled 4.3M, and average daily listings came in at 1.9M. iResearch estimates 58.com had a 38.1% share of the Chinese online classifieds market (in terms of cash receipts) in 2012. Rivals include local firms Ganji and Baixing.
  • The company recently struck a partnership with Baidu related to the latter's Light App mobile app platform. It also has an online payments partnership with Alibaba's Alipay unit.
  • 2013 has been a very good year for Chinese Internet stocks. 58.com's offering might benefit from the momentum.
Comments (2)
  • Patent News
    , contributor
    Comments (1404) | Send Message
     
    surprised craigslist does not block them!
    19 Oct 2013, 06:51 AM Reply Like
  • Brian Nichols
    , contributor
    Comments (2479) | Send Message
     
    Price/sales+growth suggests this is a pretty good deal with a valuation under $2b
    19 Oct 2013, 02:17 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs