Chinese travel site Qunar on Friday surged 89% on its US stock market debut, further evidence of investors’ increasing confidence in such listings from mainland groups.
The offering of 11.1 million American Depository Shares by Qunar was priced at $15, about 7% above the high end of price guidance of $12-$14, which had been increased from $9.5-$11.5.
Qunar’s shares closed at $28.4 on the Nasdaq stock exchange.
The listing came one day after that of online classified website 58.com, which also set the final pricing beyond the revised range and enjoyed a 42% increase on the first trading day.
Investors were so positive that the book was more than 40 times covered, according to two sources. Almost 500 investors participated in the deal, including global long-only funds.
Baidu, the Chinese search engine, invested $306 million in Qunar in July 2011 and held a 61.05% stake in the company before the listing. Based on the debut closing of Qunar, the stake of Baidu amounted to $2.02 billion, more than five times the initial investment.
“Sentiment for US-listed China internet companies was very strong and constructive right now,” said a banker on the Qunar listing.
Proceeds from the listing will be used to develop technology, infrastructure and products, and to extend market share. Deutsche Bank and Goldman Sachs were leads on the deal.
