US-listed Chinese IPO (Initial Public Offering) companies have always caught investors’ attention. On May 4th, Chinese social networking site ‘Renren’, also known as the Chinese Facebook, listed in the New York stock exchange at US$14 per share. The stock price soared to $24 during the day before ending at $16 per share.
The company’s IPO raised a total of US$743 million which is 72 times the worth of its sales from last year. Initially the company planned to raise US$584 million, yet eager investors demanded more opportunity, which led the company to raise share prices higher. It is an eye-popping amount of money considering the fact that the original Facebook was valued at only 25 times its previous annual sales in a recent Goldman Sachs investment in the company.