Kaixin Raises Profile in Renewed IPO March 开心网一改低调有意再次赴美上市
The normally low-key Kaixin, China’s second largest social networking system (SNS), has suddenly raised its profile with a stream of headline-making announcements, in what looks like a bid to drum up publicity in the run-up to a revival for its US listing plan that got shelved earlier this year. In two separate pieces of news, domestic media are citing unnamed sources saying that Kaixin has agreed to form a social gaming joint venture with Shanda (Nasdaq: GAME), one of China’s leading leading online game operators (English article); and the company itself has made a relatively ho-hum announcement of another tie-up with a US company called Message Systems to strengthen the messaging platforms on its site. (company announcement) Those two news bits come just a week after media reported, and the company partially confirmed, that leading Internet firm Tencent (HKEx: 700) had taken a stake in Kaixin, joining a group of previous investors that included Sina (Nasdaq: SINA). (previous post) The recent flurry of news also follows a rare press conference led by media-shy Kaixin founder Cheng Binghao in August, where he addressed reports that the company’s business was slowing. (previous post) The company had previously been in a race with Renren (NYSE: RENN), China’s biggest SNS operator, to make an IPO earlier this year, but lost out in that contest. Reports indicated Kaixin was ready to finally go public during the summer, but may have temporarily shelved the plan amid a broader wave of negative sentiment towards China stocks due to concerns over accounting practices. Now that the negative sentiment seems to have faded and is more neutral, this recent flurry of activity mentioning big-name players like Shanda and Tencent, looks like Kaixin is trying to drum up excitement in preparation to relaunch its IPO bid. Pending any unforeseen changes in the market, the timing actually looks quite good, and an offering in the next month would probably do well. It certainly couldn’t do worse than money-losing Renren, whose shares initially after their May debut, but are now down nearly 60 percent from their offer price, caught up in the negative China sentiment.
Bottom line: A recent flurry of activity indicates Kaixin is gearing up to relaunch its delayed IPO, which should do well as negative sentiment towards China stocks subsides.
Related postings 相关文章:
◙ Kaxin Buys Time With Tencent Tie-Up 开心网与腾讯合作堪称一箭双雕
◙ Renren Discovers Microblogging Too Late
◙ Gaopeng, Kaixin Spotlight China Internet Turmoil 高朋网、开心网凸显中国互联网混乱现状
