Hearts Beating for Baidu.com
The Wall Street money machine gets a big test Thursday night when a Chinese search engine prices 4 million initial shares for listing on the Nasdaq.
Baidu.com (BIDU), based in Beijing, said in a regulatory filing that it expects the shares to price at $23 to $25 apiece, up from its earlier range of $19 to $21. It has also increased the size of the IPO to 4.04 million shares from the previously announced 3.6 million.
At the midpoint of its projected price range, Baidu.com will raise $101 million.
As the Chinese counterpart to the popular U.S. search company Google (GOOG), Baidu.com is being compared to one of the hottest Wall Street IPOs of the last half-decade. Its revenue is only a fraction of Google's, but it has shown impressive growth in recent years, posting $4.5 million in operating cash flow in 2004 after breaking even the previous year. Google owns a 2.6% stake in the company.Baidu will make its Wall Street debut at a time when Chinese companies have become a lightning rod in the U.S. financial markets and political circles. The Chinese government's recent revaluation of its currency followed a couple of attempts by Chinese companies to acquire U.S. assets, including the controversial bid for Unocal (UCL). Meanwhile, the fast-growing Chinese economy has long been viewed as a new frontier for U.S. multinational corporations looking to find emerging markets, such as Wal-Mart (WMT) and Starbucks (SBUX). With about 20 Chinese companies having listed on the Nasdaq since 2000, only about three Chinese IPOs have taken place in 2005, including Hurray (HRAY), China Techfaith (CNTF) and Focus Media (FMCN). Other Chinese companies with popular stocks trading on the Nasdaq include Sina.com (SINA) and Sohu.com (SOHU).
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV