Demand for the USD800 million worth of notes that Weibo, a Chinese firm behind the popular Sina Weibo microblogging platform, will list in Singapore has exceeded supply over four times.
Weibo’s bonds were oversubscribed in a ratio that is more than that of Tencent Holdings’ and Baidu’s recent offerings, the Beijing-based firm said in a statement. Its notes have a yield of 3.5 percent and mature in 2024.
Weibo expects to receive USD793 million in net proceeds from the offering on the Singapore Exchange Securities Trading, and the money will be used for general corporate purposes, it added.
Goldman Sachs Asia is the sole book runner of the offering. Investment institutions, including Fidelity Investments, BlackRock, Lord, Abbett, AllianceBernstein Holding, and T. Rowe Price Group, took part in the bond sale.
Weibo’s revenue grew 14 percent from the previous year to USD399.2 million in the first quarter, according to its earnings report. Its net profit jumped by 52 percent to USD150.4 million. Weibo expects its net revenue to rise to a point between USD427 million and USD437 million.
Weibo’s [NASDAQ: WB] share price rose 2.5 percent to 42.60 yesterday.
Source: yicaiglobal.com
