May 4, 2011 by USA Post
Shares, trading under the symbol “Renn,” increased by about 4.96 and 35.39 percent or 18.95 and, based on numbers noted at 12:30 pm ET. Although early action was and climbed as high as 24. The volume was closer to 60 million shares.
Morgan Stanley, Deutsche Bank Securities and Credit Suisse led Renren IPO. Other underwriters are Bank of America Merrill Lynch, Jefferies, Pacific Crest Securities and Oppenheimer & Co.
Renren has attracted some attention, not only for the IPO provides further evidence of the slow recovery of the public market, but also because the company is the first social networking site to go public in the United States.
Despite the inevitable comparisons with his U.S. counterpart, with some going so far as to call it the “Facebook of China”, yet Renren Facebook scale approach. While the company reported 117 million users, according to its prospectus, later revealed that only 31 million of them were active users monthly. That is only a small fraction of 600 million users of Facebook worldwide.
Investors are betting likely Renren promises that can greatly expand their country of origin after a public offering healthy. China was home to 457 million Internet users at the end of last year and half use a social networking site, so the market is clearly there.
Renren also differs significantly from Facebook in the social games, and monetary benefits are more deeply integrated into the company. As proof, 42 percent of Renren revenue from advertising and 45 percent come from social games. A much larger percentage of the revenue Facebook is believed to come from advertising.
Renren’s largest shareholders include Softbank, which has approximately 405,400,000 shares (approximately 40 percent of the pre-IPO company), company founder and CEO Joseph Chen, who has about 283,300,000 shares (around from 27.7 percent before the IPO), and General Atlantic, which has about 54 million shares (approximately 5.3 percent before the IPO).
Softbank does not unload all the shares, but Chen and General Atlantic are selling about 13 million and 13.5 million respectively.
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