（Written by Longfei Hu & Kai Lukoff, iChinaStock.com)
Qihoo 360 was the first Chinese internet company to IPO in the US this year, but there are many more to come. Ge Yang, NYSE’s representative in Beijing, states, “Following Qihoo 360 we expect another batch of Chinese firms to go public, with a number of different business models.”
The 17 Chinese internet firms shooting for an IPO this year fall into 5 categories: social networks, online TV and video, mobile Internet, e-commerce, and online media.
1) Social Networks
RenRen claims to be China’s largest real-name social network. Its forerunner was XiaoNei, which launched in 2005. Xiaonei was purchased by Oak Pacific Interactive in 2006 and in 2009 subsequently changed its name to RenRen (“the people’s web” in Chinese).
Softbank is the largest investor in RenRen with about a 40% stake. RenRen has 160 million registered users. Its primary revenue sources are web games and advertising.
On February 19, 2011, Sina Tech reported that RenRen plans to IPO in the U.S, with the aim of raising about $500 million.
Kaixin (Kaixin001.com), founded in March 2008, is one of China’s largest social networks. In August of 2010, it claimed 86 million registered users, with an average of 50 million monthly active users. Its revenues are about 300 million yuan, primarily from advertising (about 80%), virtual goods, and third party developers. CEO Binghao Cheng stated that by the second quarter of 2010 monthly profits were over 10 million yuan.
At the end of last year Caijing reported that the company plans to IPO in 2011. On March 16, it was leaked that Kaixin had already selected JP Morgan and Citigroup to serve as underwriters of the IPO.
Taomee (taomee.com) is a children’s social network. It claims to have 180 million registered users with active users of 30-50 million. In January 2011 it announced that it had reached profitability.
In October 2010, Caijing reported that Taomee will IPO on NASDAQ in 2011. It has fulfilled basic preparations at present.
In December 2010, Tencent Tech quoted an industry insider, “The Chinese dating site Jia Yuan intends to list on the NASDAQ next year, with the aim of raising $100 million.” Jia Yuan would be China’s first dating site to go public.
2) Online TV and Video
Tudou launch on April 15, 2005 as China’s first video sharing site. On November 10, 2010, Tudou filed with the SEC for listing as TUDO on the NASDAQ with the aim of raising $120 million.
The magazine China Entrepreneur reports two possible reasons for the delay since then: 1) Tudou CEO Gary Wang violated the “quiet period”; or 2) A lawsuit from the ex-wife of Tudou CEO Gary Wang which claims a stake in the company. Gary Wang holds a 13.4% stake in Tudou according to the SEC filing.
PPLive (PPTV) provides TV streaming and video-on-demand.
In February, PPLive received a $250 million investment from Softbank. According to Caijing Daily, CEO Xinchen Yao aims to list on NASDAQ by the end of the year.
PPStream provides TV streaming and video-on-demand.
On February 17, TechWeb reported that PPStream intends IPO in the US and raise $200-300 million. Bank of America Merrill Lynch and UBS Investment Bank will serve as underwriters.
Shenzhen-based Xunlei is China’s largest download client, used primarily for movies and music. Advertising is its largest source of revenue, but the firm also sells value-added services to users, like cloud storage space to host videos and music.
On March 3, Bloomberg quoted an industry insider who stated that plans to list in the US this year to raise about $200 million. Deutsche Bank and JPMorgan will serve as underwriters. On March 23, Reuters reported that Xunlei could IPO as soon as April, but was waiting for the right market conditions.
3) Mobile Internet
NetQin is a mobile security software firm. On March 16, NetQin filed with the NYSE with the intention of raising $100 million.
The eve of its IPO China’s CCTV accused NetQin of plotting to disseminate malware via Feiliu, a firm it invested in, and then charge users for NetQin’s services to remove the malware. There is concern that this revelation may hinder NetQin’s chances for an IPO.
UCWeb’s core product is the UCWeb mobile browser. In March 2011, it claimed to have more than 200 million users and over 700 million downloads.
On March 25, Sohu IT reported that the company was reaching out to investors in preparation for an IPO this year.
3G.cn
3G.cn claims to be China’s largest mobile portal. According to management advertising accounts for over 70% of revenues and it estimates 2010 revenues will surpass 200 million yuan.
In July 2010, after completing a third round of investment for $100 million, CEO Yuqiang Deng stated, “This is our last round of financing before an IPO. We plan to list at the end of this year or the beginning of next year.”
Yicha was established in February 2004 and was China’s first mobile search engine.
In May 2010, Chairman Bin Liu stated, “Yicha originally planned to list in Japan this year, but due to a weak market we’ll wait until next year; we estimate 2010 revenues will reach $10 million.”
4) E-commerce
Qunar is a price-comparison site for booking plane tickets, hotels, and travel packages, similar to Kayak in the US.
In September 2010, Qunar’s CEO told Reuters, “At the earliest we hope to list in the second half of next year and release 20-25% of our shares. Our first choice is NASDAQ.”
Red Baby is China’s largest site for mothers and babies. Sales reached 2 billion yuan in 2009.
In December 2010, the managing director of New Enterprise Associates China, an investor in Red Baby, stated that the firm plans to IPO in the US in the next year.
5) Online Media
Shanda Literature is a subsidiary of the Shanda Group and includes well-known literature sites like Chinese Web.
On February 16 HeXun Tech quoted an insider saying the Shanda Literature plans to IPO on the NASDAQ in June.
HeXun is a famous Chinese financial portal. Last December Chinese Entrepreneur reported an employee who stated management was aiming for an IPO in the second quarter of 2011.
iFeng is a cross-platform media company that includes a portal (www.ifeng.com) , a mobile site (3g.ifeng.com) and iFeng video.
iFeng Deputy Director Xinzeng Liu revealed last year that the firm plans to IPO in the third quarter of 2011 and that the video property would be included as a selling point.
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