Dallas, Texas 03/14/2014 (FINANCIALSTRENDS) – SINA Corp (NASDAQ:SINA) which is a fast growing internet software and services company which in the recent years has grown in size and the number of users it is able to attract into a firm which competes with the likes of other home grown internet companies like Baidu has let it be known that it is working towards offering its common stock to the U.S market investors in the near future in the form of a IPO. The insiders in the company who do not want to be named at this stage have indicated that the firm hopes to raise close to $500 million from this exercise.
The firm which offers services which resemble that of Twitter in Chinese language has already hired tech services of investment banking firm Credit Suisse and its peer Goldman Sachs to help in putting in place the organization structure and the other attendant financial and operational processes which are a prerequisite for any company to offer a IPO on the U.S exchanges.
The timelines of the IPO are not yet firmed up. It is in the range of April to June time frame. The move by this fast growing internet firm with a predominant part of its business located in China is very similar to that of those other firms which are largely Chinese in operations and in customer base, but prefer the transparent and systematic approach that U.S markets offer start ups to monetize their intrinsic potential via the IPO route.
Other such internet companies which are likely to join SINA Corp (NASDAQ:SINA) in raising capital from the U.S markets are the Alibaba Group which has a huge investment from Yahoo Inc. The IPO is slated to happen sometime this year and investment analysts have already started taking of evaluations which would cross $100 billion for this e commerce company. It is also interesting to note that Alibaba in 2013, had bought a significant stake in SINA Corp (NASDAQ:SINA) by paying close to ½ billion dollars.