NEW YORK (TheStreet) -- SINA Corp (SINA) is climbing on Monday after Weibo, a company it has majority ownership of, filed a Form F-1 Registration Statement with the SEC to raise around $500 million in a U.S.-based IPO.
Shanghai-based SINA holds a majority 78% stake in micro-blogging platform Weibo, while Alibaba (which is also expected to float on U.S. markets this year) owns around 19%.
In its filing, Weibo said it will "use approximately $250 million of the net proceeds we receive from this offering to repay loans we owe to SINA, our parent company and controlling shareholder."
By market open Monday, SINA shares had added 8% to $69.77.
Weibo said the remaining capital raised will be reinvested in technology, infrastructure and product development, as well as other general corporate purposes.
In the three months to December, Weibo's ad revenue soared 163% year over year to $56 million, while gross revenues climbed 185% to $188.3 million. The company said it had 129 million users at the end of last year and that its total number of daily users grew 36% to 61.4 million.
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TheStreet Ratings team rates SINA CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SINA CORP (SINA) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."