Published: Fri, November 10, 2017
Worldwide | By Isabel Fisher

Shares in Chinese search engine Sogou remain flat after NYSE debut

Shares in Chinese search engine Sogou remain flat after NYSE debut

At its session high the stock rose more than 13 percent.

The total IPO size would be $585 million, assuming the underwriters do not exercise their over-allotment option.

As we covered back in October, Sogou is a spin-off from Inc., the Chinese internet portal that itself floated on the Nasdaq exchange back in 2000.

The flotation was jointly managed by United States banks JPMorgan and Goldman Sachs, along with Credit Suisse and China's CICC.

Sohu will remain Sogou's controlling shareholder after the IPO, while Tencent will own a 38.7 percent stake. While it's a distant second to Baidu, the company says it's the fourth largest internet business in China. "And Sougou has successfully developed its own user base in the past; its input method has 300 million daily active users already".

Its IPO follows Wednesday's hugely successful Hong Kong IPO of China Literature Ltd (HK:), the e-book unit of Chinese internet and media giant Tencent Holdings Ltd (HK:). Calling the IPO a "milestone", he hopes that a U.S. IPO will help with hiring and make it easier to collaborate with U.S. tech companies.

In the last 12 months, Sogou generated $710.8 million in revenue and $66.5 million in net income.

Sogou, the default search service on Tencent's Mobile QQ browser and, has about 483 million mobile monthly active users, according to its IPO paperwork with US securities regulators.

Beijing-based Sogou, which competes with Baidu and Alibaba's UCWeb, reported net income of $66.7 million for the nine months ended September 30, compared with $45.4 million for the same period a year earlier.

The company will be issuing 45,000,000 shares at a price of $11.00-$13.00 per share.

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