Bloomberg | February 20, 2011 | Serena Saitto and Brian Womack
Renren.com, China’s largest social- networking service, is seeking to capitalize on strengthening demand for the nation’s Internet stocks with a U.S. initial public offering.
Renren.com is preparing an IPO of about $500 million this year, according to three people with knowledge of the plan. The banks handling the IPO are Morgan Stanley, Deutsche Bank AG and Credit Suisse Group AG, according to the people, who declined to be identified because the matter isn’t public. The offering could come by June, two of the people said.
“It’s good timing to go for a listing,” said Jim Tang, a telecommunications analyst at Shenyin Wanguo Securities Co. in Shanghai. “It definitely will be able to lure many international investors. It should be using the IPO proceeds to develop and promote its technology and products.”
Renren.com has more than 160 million registered users, according to Analysys International in Beijing. The site could use the IPO proceeds to woo more visitors as it competes with local rivalsTencent Holdings Ltd. and Baidu Inc. in the world’s most-populous nation. Renren — a name that means “everyone” in Chinese — has similar features as Facebook Inc., which is blocked in China.