Qihoo 360 IPO Soars 134% in Market Debut

| About: QIHOO 360 (QIHU)
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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
(in $mm)
First Day
Post Bubble
Era Rank
Baidu.com BIDU 08/04/05 $109 354% #1
Youku.com YOKU 12/07/10 $203 161% #2
Qihoo 360 Technology QIHU 03/29/11 $176 134% #3
ChinaCache International CCIH 09/30/10 $84 95% #8
E-Commerce China Dangdang DANG 12/07/10 $272 87% #12
Longtop Financial LFT 10/30/07 $183 85% #13
China Digital TV STV 10/04/07 $192 75% #19
SouFun Holdings SFUN 09/16/10 $125 73% #20
Source: www.RenaissanceCapital.com