Qihoo 360 Technology (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 (BIDU) and China's #1 video portal Youku.com (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 (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 (DANG) and major real estate portal SouFun Holdings (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 and Citi 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 Return |
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 |
