Dallas, Texas 04/22/2014 (FINANCIALSTRENDS) – SINA Corp (NASDAQ:SINA) which is the parent firm of social media and blogging platform Weibo Corp (ADR)(NASDAQ:WB) managed to successfully hand hold its majority owned subsidiary while it went through the run up and eventual listing on the US stock market last week. The stock of Weibo Corp (ADR) (NASDAQ:WB) debuted its trading stint in U.S on 17th March at a price of $16.27 per share as against the $17 price set by the company.
Since then, the stock has posted nearly 37.7 percent increase in its market value during trading, setting aside fears of analysts that U.S investors would stay away from the stock due to fears about the profit potential of a social media platform which is heavily dependent and impacted by the mercurial Chinese censorship and restrictive cyber laws. The demand in the latest tech IPO has also been driven by anticipation building up in U.S investors of impending public offering of another tech and internet from China, the Alibaba Group Holding Ltd (IPO-ALIB.N)
It is interesting to note that SINA Corp (NASDAQ:SINA) went ahead with the IPO offering of Weibo Corp (ADR) (NASDAQ:WB) at a very perilous time for the tech sector in US markets. Largely driven by analyst anxiety of overvalued tech and retailing stock in the back drop of impending 1Q earnings season, the S&P 500 as well as the broader Dow Jones has seen huge sell off in recent weeks. This investor skittishness had promoted SINA Corp (NASDAQ:SINA) to reduce the size of its IPO from previously announced 20 million shares of American Depository Receipts to $16.8 million. It also blinked and priced its offer at the lower range of $17 per share, fearing scaring away investors.
It is of import here to note that Weibo Corp (ADR) (NASDAQ:WB) has a significant stake investment from Alibaba Group Holding Ltd.