Tag Archives: China Auto

IPO Chill Bites LaShou, China Auto 中资企业赴美上市连遭冷遇

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It may be springtime, but the warmer weather can’t come soon enough for 2 of China’s leading New York IPO candidates, group buying leader LaShou and auto rental specialist China Auto, which are both still feeling the freeze from US investors towards Chinese firms. The latest media reports say that China Auto’s imminent IPO is meeting with weak demand that keeps getting worse, while LaShou is suffering an acute cash crunch due to its own ability to raise new funds from a long-delayed IPO. Let’s look first at China Auto, which looked strong early this year when it became the first Chinese company to file for a New York IPO after a half-year hiatus due to poor investor sentiment after a series of accounting scandals last year. Just a day before China Auto was set to price its delayed IPO, it was only able to find buyers for about half the 11 million American Depositary Shares it aimed to sell for $10.50 to $12.50 each, according to a foreign media report, citing unnamed banking sources. (English article) Presuming it lowers the price below the range, perhaps to around $9.50, and then manages to sell three-quarters of its planned 11 million shares, the company would end up raising around $80 million. That would represent about a quarter of the $300 million China Auto initially hoped to raise, which it cut to around $158 million earlier this month when signs of weak demand were already emerging. (previous post) I predict this IPO will go ahead, unlike several similar offerings that had to be aborted last year, since China Auto clearly needs the cash and is already so close to the final listing; but all the signs indicate investor sentiment is still extremely weak for Chinese companies, especially money-losing ones like China Auto. On a similar note, another major money loser, LaShou, is reportedly making large staff cuts and slashing its advertising spending as it seeks to conserve cash after the derailment of its own New York IPO last year. (previous post) The latest media reports are saying that LaShou has cut 40 percent of its technical staff, that the vice president of its online mall has resigned, and that it has slashed its advertising aimed at drawing visitors to its site. (Chinese article) The reports contain a response from a spokesman, who describes the moves as a “strategic adjustment”. LaShou’s original IPO plan reportedly derailed last year after several major investment banks refused to underwrite the listing due to concerns about some of the its accounting, which led US securities regulators to also request more information. One of my  sources told me the company was preparing to reactivate the listing several weeks ago, though we have yet to see any new public filings. Even if it manages to file for an IPO, considering the current chilly climate, I wouldn’t expect any investors to show interest in a LaShou offering due to its money-losing status and previous questions about its accounting. If that’s the case, look for LaShou’s cash crunch to worsen in the months ahead, potentially forcing it to either close or sell itself for a bargain price to a more cash rich rival or one of China’s healthier Internet companies.

Bottom line: Weak investor sentiment will lead China Auto to raise just a quarter of the funds from its original IPO plan, and will prevent cash-starved LaShou from making its own planned listing.

Related postings 相关文章:

◙ IPOs: China Auto Slashes, People’s Daily Marches Ahead IPOs:神州组车减，人民网启动

◙ 55Tuan + Ganji: Group Buying Clean-Up Acclerates 窝窝团携手赶集网：团购洗牌加速

◙ 55tuan Restarts IPO Race With LaShou 窝窝团和拉手网重启IPO争先赛

News Digest: April 24, 2012 报摘： 2012年4月24日

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The following press releases and media reports about Chinese companies were carried on April 25. To view a full article or story, click on the link next to the headline.

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◙ China Auto Rental Said to Struggle to Attract Investors (English article)

◙ Sohu, Tencent, Baidu Video Channels to Jointly Buy Copyrighted Material – Source (Chinese article)

◙ Huawei Profit Halves; Handset Competition Saps Margins (English article)

◙ Lashou Reported Cutting Staff, Halting Ads, Calls Move “Strategic Adjustment” (Chinese article)

◙ Alibaba.com (HKEx: 1688) Reports Net Profit1 of RMB339.2 million in Q1 2012 (Businesswire)

◙ Latest calendar for Q1 earnings reports (Earnings calendar)

News Digest: April 12, 2012 报摘： 2012年4月12日

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The following press releases and media reports about Chinese companies were carried on April 12. To view a full article or story, click on the link next to the headline.

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◙ China Auto’s (NYSE: CARH) April 26 IPO to Raise Up to $158 Million (Chinese article)

◙ UnionPay Profit Breaks 1 Bln Yuan, Up 10-Fold Over 4 Years (Chinese article)

◙ Ganji, 55tuan to Combine Group Buying Operations (Chinese article)

◙ People’s Daily Online Kicks Off IPO Roadshow (English article)

◙ AutoChina (OTC: AUTCF) Responds to SEC Lawsuit, Believes Claims Without Merit (Businesswire)

◙ Latest calendar for Q4 earnings reports (Earnings calendar)

Overseas China Stocks on Hold, Waiting for Catalyst

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Overseas listed Chinese stocks have entered a sort of holding pattern these last few weeks, with investors neither embracing nor dumping them as the market waits for a catalyst to give some direction. A recent scathing Forbes report on security software maker Qihoo 360 (NYSE: QIHU) has done little to dent that company’s stock, reflecting an ebb in investor skepticism that battered such shares last year. (previous post) But the flop of the first IPO this year by a Chinese firm in the US, Vipshop (NYSE: VIPS), also shows investors are far from willing the embrace these stocks again. The needed new catalyst could lead the market either way, depending on what it is. Famous short seller Muddy Waters is hoping to provide that catalyst to lead the group lower, saying it will issue a new report in the next few weeks on several Hong Kong-listed China stocks. (Chinese article) But a blockbuster IPO in either Hong Kong or the US could lead the market higher if the right company emerges to rekindle investor interest in the China growth story. These last few weeks have been full of mixed signals, both on the plus and minus side for this group of entrepreneurial firms whose shares were hammered  last year by a series of accounting scandals that undermined the entire sector’s credibility. Negative sentiment led to a halt in new overseas listings dating back to last summer, when a disastrous IPO for online video sharing site Tudou (Nasdaq: TUDO) sent the market into hibernation. Vipshop, a money-losing online discount retailer, tested the waters to see if sentiment had improved last month by making the first IPO by a Chinese company in the US for more than half a year. Unfortunately, it discovered investors were still highly skeptical, as its shares priced below their previously indicated range and then fell another 15 percent on their trading debut. (previous post) Its shares continued to fall after that, and now trade at about two-thirds of their IPO price. But then weeks later, Forbes issued a scathing report on Qihoo 360 questioning a number of its accounting practices and implying that its auditor, Deloitte, might resign the account later this year. That report followed a similar one late last year by a small research house named Citron, whose motives were more obvious due to its status as a short seller. Despite both reports, however, Qihoo shares have remained remarkably stable in their current range, indicating investors aren’t as willing to believe negative news as they were last year, when new short selling reports were coming out almost weekly. So, what exactly is the market waiting for? In my view, it wants a clear signal one way or the other on the China market’s growth potential and the accounting issue. Muddy Waters founder Carson Block clearly wants his firm to be a catalyst in the negative direction by saying he will soon issue a report on Hong Kong-listed Chinese firms that will presumably show more problems. At the same time, a solid IPO by a good Chinese firm could easily attract investors back to the space if a good candidate comes along. That would mean China would have to find a company that is posting both strong double-digit revenue growth and is also profitable, with the profits being especially important for investors wary of buying into money-losing companies. Such companies do exist, with e-commerce leader Alibaba being the most notable example. Unfortunately, Alibaba has shown no signs of making an IPO anytime soon, and other companies with a similar profile are far from plentiful. The handful of other companies that have filed for US IPOs so far this year, including car rental firm China Auto and online literature firm Shanda Cloudary, are both losing money despite their strong growth potential, meaning neither is likely to provide the right tonic the market needs to rekindle positive sentiment. I would bet the Muddy Waters’ report will do little to further undermine investor confidence, though a resignation by Deloitte or another major auditor from a big Chinese company could send the market back into a tailspin. In the meantime, investors will be waiting for the arrival off a white knight like Alibaba to make an IPO and breathe new excitement into the market — something also unlikely to happen until the second half of the year at earliest.

Bottom line: Shares of overseas listed Chinese stocks are likely to remain in a state of limbo until a major catalyst comes, either in the form of a new accounting scandal or a blockbuster IPO.

Related postings 相关文章:

◙ Qihoo: The Next Accounting Victim? 奇虎360：下一个会计丑闻受害者？

◙ China IPO Winter Goes On as Vipshop Flops 唯品会大跌，中国IPO冬季持续

◙ Confidence Crisis Easing For US China Stocks 中国概念股信任危机缓和

Investors to AsiaInfo: Let’s See Some Numbers 投资者对亚信创联并购案减失耐心

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There are several interesting items out there today on US-listed Chinese firms, led by a resounding investor yawn at news that telecoms software maker and acquisition target AsiaInfo-Linkage (Nasdaq: ASIA) is seeking more offers after a major Chinese investor made a surprise bid for the company last month. In separate but other noteworthy news, we’re getting some more financials that don’t look pretty from car rental specialist China Auto, which has filed to make a New York IPO, and are hearing about an ambitious global expansion plan from e-commerce giant 360Buy, which hopes to someday make a New York IPO to raise more than $1 billion. Let’s start with AsiaInfo-Linkage, which put out a statement on Monday saying it was seeking additional buyers after receiving an offer in February from an investment arm of China’s giant CITIC Group. (company announcement) AsiaInfo’s shares rallied after it announced the initial CITIC bid, and rose again after media reported that private equity firms including KKR and TPG had expressed interest in making competing offers. (previous post) But this latest announcement failed to excite anyone, with AsiaInfo’s shares actually dropping slightly in Monday trade even as the broader Nasdaq rallied nearly 2 percent, indicating investors may be growing impatient with all the talk and want to see some actual numbers. CITIC’s original offer price was never officially disclosed, so it’s not at all clear how much it bid and all we really know is that some media reports have said new bids could value the company at $1 billion or more, which is where the company’s current market capitalization now stands. Look for the stock to come under some pressure if no new concrete details come out soon. Moving on to other matters,  media are citing an executive from 360Buy, which also goes by the name Jingdong Mall, saying the company will set up several international sites this year to let overseas buyers purchase items on its site. This latest development, combined with similar recent announcements of major new hiring, reflect the fact that 360Buy has too much cash, after receiving over $1 billion last year in a record-high capital raising round for a privately held Internet company. The company is clearly coming under pressure from its new investors to use some of that cash to create an exciting story for a planned New York IPO, which could come this year or next. But its rapid growth is a bit worrisome, as such quick expansions frequently run into managerial and technical problems and end up creating more losses than new growth. Lastly there’s China Auto, which filed for a New York IPO early this year but has gone silent since then. Now Chinese media are reporting the company has made another IPO filing, in which it disclosed it has lost money over the last 3 years amid a rapid expansion and needs the money from an IPO to repay debt. (Chinese article) This is the first time we’ve gotten such detailed financials, and the money-losing element doesn’t bode well for the offering, following the disastrous launch last week of China’s first New York IPO this year for Vipshop (NYSE: VIPS). (previous post)

Bottom line: Investors are growing impatient with takeover target AsiaInfo-Linkage, and will put the stock under pressure until it reveals more details about potential buyout offers.

Related postings 相关文章:

◙ China Auto Wins 2012 Race For 1st US IPO 神州租车抢先成首个赴美IPO的中国企业

◙ China IPO Winter Goes On as Vipshop Flops 唯品会大跌，中国IPO冬季持续

◙ Debut Offshore IPO Looks Weak, But Not So Bad 阳光油砂上市首日表现差强人意

News Digest: March 27, 2012 报摘： 2012年3月27日

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The following press releases and media reports about Chinese companies were carried on March 27. To view a full article or story, click on the link next to the headline.

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◙ Australia Bans China’s Huawei From Working on Internet Network Amid Security Worries (English article)

◙ AsiaInfo-Linkage (Nasdaq: ASIA) Committee to Consider More “Going Private” Proposals (PRNewswire)

◙ Qantas (Sydney: QAN), China Eastern (HKEx: 670) to Set Up HK Budget Airline (English article)

◙ China Auto Accelerates IPO Plan Amid Spending Boom, Annual Losses (Chinese article)

◙ Minsheng (HKEx: 1988) Said to Price Shares at HK$6.79 Each in Offering (English article)

◙ Latest calendar for Q4 earnings reports (Earnings calendar)

China IPO Winter Goes On as Vipshop Flops 唯品会大跌，中国IPO冬季持续

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My earlier forecast that spring may soon arrive for US-listed China stocks may have been premature, as the year’s first IPO by Vipshop (NYSE: VIPS), a money-losing online discount retailer, has been a resounding flop just about any way you look at it. Some might say the fact that Vipshop completed the IPO at all is an accomplishment, and perhaps that’s true since its offering is the first major one by a Chinese company in New York for more than half a year. But the results of the offering and its share trading debut are both dismal from any perspective. The company initially hoped to raise up to $117 million when it first filed for its IPO, and later set a price range of $8.50 to $10.50 per American Depositary Share. But in a relatively rare development, it couldn’t even price the offering within that previously stated range, and ended up having to offer shares at $6.50 each — 24 percent lower than the bottom of the range. (English article; Chinese article) That meant the company only raised $71 million in the process, again nearly 40 percent less than the top end of its original target. Clearly investors weren’t very interested in this money-losing web firm, as overall sentiment towards US-listed Chinese companies remained weak due to a series of accounting scandals last year. If the early signals weren’t loud enough, investors voiced their lack of interest in Vipshop one last time on its Friday trading debut, bidding the shares down 15 percent to end the day at $5.50, giving it a market capitalization of $268 million. The offering marked a decidedly worse performance than the last major US offering by a Chinese company, video sharing site Tudou (Nasdaq: TUDO), whose miserable debut last August prompted other IPO candidates to indefinitely postpone their listings until the market improved. Tudou, which was also losing money, priced its offering in the middle of its range, and then saw its shares tumble 12 percent on their first trading day. So if Tudou was a failure, then it’s probably fair to call Vipshop a disaster. Vipshop is a relatively small player in China’s e-commerce space whereas Tudou is the second largest online video site, so it may not be completely fair to compare the 2. Still, the message from this latest offering is loud and clear: investors aren’t interested in Internet companies that are losing money, and even profitable companies would need to be leaders in their categories to attract much attention. That poses an interesting challenge for the handful of other companies that are moving ahead with listings. China Auto, the earliest company to file for an IPO this year, could still do ok as it’s not an Internet company and is a leader in the auto rental space. Shanda Cloudary and LaShou could be more problematic, as they’re leaders in the online literature and group buying spaces, respectively, but both are still losing lots of money. I expect all 3 of these companies to move forward with their offerings despite this chill from the Vipshop debut, but would look for all to see similar weak pricing and drops on their trading debuts.

Bottom line: Vipshop’s dismal IPO and trading debut indicate overseas investors still have little appetite for money-losing companies in China’s crowded Internet space.

Related postings 相关文章:

◙ Vipshop Takes Lead in IPO Race 维品会或成为今年首家赴美上市中国企业

◙ Outlook Cloudy As Shanda Refiles for Literature IPO 盛大文学重启赴美IPO计划

◙ China Auto Wins 2012 Race For 1st US IPO 神州租车抢先成首个赴美IPO的中国企业

Vipshop Takes Lead in IPO Race 维品会或成为今年首家赴美上市中国企业

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The race to make China’s first New York IPO of 2012 is nearing the finish line, with online discount retailer Vipshop emerging as the likely winner after getting off to a late start.The listing will mark not only the first Chinese IPO in New York this year, but also the first in months following disastrous debuts for a few companies that launched offerings last summer at the height of a confidence crisis towards US-listed Chinese stocks after series of accounting scandals. I previously said that growing signs are emerging that the worst of the crisis has passed (previous post), and at least the initial response to Vipshop’s offering appears to confirm that trend. According to a domestic media report, Vipshop has set the price range for the offering at $8.50 to $10.50 per share, meaning it would raise $95 million at the low end of the range and up to $120 million if it can get the highest price. (Chinese article) This range is quite significant, as it is unchanged from Vipshop’s announcement in its first public filing that it planned to raise up to $120 million from the IPO. (previous post) That means that investor reception to the offering was within expectation, unlike last year when many companies had to sharply scale back their capital raising plans after receiving weak or no investor demand at the height of the crisis. Online video site Tudou (Nasdaq: TUDO) became a symbol for how bad things were when it went ahead with its Nasdaq IPO despite awful sentiment last August, with its shares tumbling 12 percent on their first trading day. They continued their downward spiral after that, along with most other US-listed China firms, and now trade at just over half their IPO level. Vipshop became China’s second company to file for a New York IPO last month, following another application by car rental specialist China Auto which planned to raise up to $300 million. Online entertainment specialist Shanda has also filed for an IPO for its Cloudary online literature unit, but the Vipshop plan now looks like the furthest advanced and thus the likely winner. I would expect to see it price near the bottom end of its range as some investor skepticism remains, with its shares likely to trade flat on their debut. But even that kind of performance would be a huge improvement over last year, and would likely spark a flurry of refilings for many of the IPOs that got pulled last year as companies rush to take advantage of a new window of improved sentiment. If that happens, look for companies like online clothing retailer Vancl to file in the next 2 months, and even possibly from group buying leader LaShou, which is reportedly preparing to refile for an IPO after its previous plans also ran into trouble last year.

Bottom line: Vipshop’s New York IPO, the first for a Chinese firm this year, is likely to price near the bottom of its range, but would still mark a sign of improving investor sentiment for China stocks.

Related postings 相关文章:

◙ Vipshop Vies For First Internet Listing of 2012 唯品会欲在赴美上市电商公司中力拔头筹

◙ Debut Offshore IPO Looks Weak, But Not So Bad 阳光油砂上市首日表现差强人意

◙ Confidence Crisis Easing For US China Stocks 中国概念股信任危机缓和

Debut Offshore IPO Looks Weak, But Not So Bad 阳光油砂上市首日表现差强人意

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When is a 3 percent decline in the first trading day for a newly listed company a good thing? The answer is: When you’re debuting into one of the weakest IPO markets for Chinese companies listing overseas since the global financial crisis of 2008. I find it interesting that media reports are calling the Thursday debut for Sunshine Oilsands (HKEx: 2012) weak, after shares of the China-invested Canadian energy firm fell 3 percent on their first trading day as they became the first major Chinese IPO in an overseas market for 2012. (English article) I say that because the debuts for most Chinese firms listing overseas have been far worse in the last few months, amid a confidence crisis following a series of accounting scandals for US-listed Chinese firms starting nearly a year ago. The height of the crisis saw a number of firms delay their US and Hong Kong IPOs last fall, as investor sentiment tanked. Online video specialist Tudou (Nasdaq: TUDO), one of the few companies that went ahead with its New York IPO despite the terrible sentiment, saw its share tumble nearly 12 percent on their first trading day in August, and new offerings have disappeared since then. So against that backdrop, a 3 percent decline doesn’t look so bad, especially considering that the broader Hang Seng Index, the main indicator for Hong Kong stocks, also fell 1.5 percent on Thursday, taking a breather after a strong rally to start the year. I haven’t had a close look at Sunshine Oilsands’ financials, but as a company in the relatively risky oil sands business it certainly doesn’t look like a guaranteed winner over the longer term, especially if oil prices come down below the $80 mark in the next year. That reality, along with continued investor caution about China stocks in general, led Sunshine shares to price near the lower end of their indicated range, again a sign that doesn’t look too encouraging. But one has to look at the bigger picture here, namely the fact that the IPO actually made it to market at all and managed  debut roughly in line with the broader market. In the current climate, that looks like a positive start to me, and the latest sign that the confidence crisis has bottomed out and positive investor sentiment is starting to return. (previous post) A bigger test could come in the weeks ahead if and when 3 Chinese firms, Internet companies Shanda Cloudary and Vipshop, and car rental specialist China Auto make their debuts after filing in recent weeks for New York IPOs. The 2 Internet offerings will be especially challenging, as both companies are losing money. But if even 2 of the 3 can make it to market and post flat to modestly-down trading debuts, it could be time to officially call a bottom to last year’s confidence crisis.

Bottom line: The first successful overseas IPO of a major China-backed firm this year, despite a weak pricing and debut, is the latest sign that investor confidence is returning to such stocks.

Related postings 相关文章:

◙ Confidence Crisis Easing For US China Stocks 中国概念股信任危机缓和

◙ Outlook Cloudy As Shanda Refiles for Literature IPO 盛大文学重启赴美IPO计划

◙ AsiaInfo Bidding War Erupts, More to Come 亚信联创收购战打响

Confidence Crisis Easing For US China Stocks 中国概念股信任危机缓和

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While it’s never too smart to call a major market turnaround, growing signs are emerging that last year’s confidence crisis for US-listed China stocks may have finally turned a corner, with a strong rebound on the horizon if the broader market remains healthy. The first 2 months of the year have seen several positive developments for Chinese stocks in New York, following a disastrous 2011 that most would rather forget as their shares were pummeled by a series of accounting scandals that undermined the entire sector. Sensing that the worst of the crisis is over, 3 Chinese companies have filed for new US listings in the last few weeks, betting that investors will once again be interested in the China growth story. At the same time, short sellers and lawyers who seized on the crisis to make quick bucks have found far less success in some of their most recent attacks, indicating investors are once again giving Chinese companies the benefit of the doubt now that many more questionable firms have been de-listed. The nascent return of confidence is most evident in the share prices for many US-listed Chinese firms, some of which fell by 50 percent or more last year at the height of the crisis that began with attacks on 2 names, financial services company Longtop Financial and timber firm Sino-Forest. Both companies saw their shares tumble after short sellers questioned different aspects of their accounting, and Longtop was ultimately de-listed. Since bottoming out in mid December, shares of many industry stalwarts that were dragged down in the crisis have posted a strong recovery, with Internet search leader Baidu (Nasdaq: BIDU) and top web portal Sina (Nasdaq: SINA) both up about 20 percent since mid-December. Even smaller names have joined in the rally, with social networking site Renren (NYSE: RENN) and online video site Youku (NYSE: YOKU) both up by 30 or more. Equally significant has been the failure of a number of short seller attacks, which netted big bucks for companies last year. Muddy Waters, whose name became synonymous with the attacks after its successful assault on Sino-Forest last year, has found much less success with a more recent attack on Focus Media (Nasdaq: FMCN). Focus shares initially fell sharply after Muddy Waters questioned some of its data late last year, but have rallied sharply since then and are now close to their pre-attack levels. A similar attack late last year on security software firm Qihoo 360 (NYSE: QIHU) has also failed to convince investors, with the company’s stock now trading near pre-attack levels after initially falling more than 10 percent. At the same time, a series of recent investor lawsuits designed to seize on a drop in the share price of IT outsourcing firm Camelot Information Systems (NYSE: CIS) has also failed to dent the company’s stock price, again indicating investors may feel the worst is past and these Chinese companies are now more trustworthy. As the confidence creeps back, a small trickle of Chinese companies have decided to test their luck with the New York IPO market. Car rental firm China Auto was first out of the gate when it filed for an offering in January, ending several months with no major new Chinese listings. It was followed this month by e-commerce firm Vipshop and Shanda Cloudary, which initially filed for an IPO last year but had to pull the offering due to poor investor sentiment at the height of the crisis. The real test of whether the worst is really past will lie in the weeks ahead, as these 3 offerings go to market and meet with either investor interest or more skepticism. I personally think China Auto could do well, though the 2 Internet offerings could meet with more tepid interest as both are still losing money. Still, if these 3 can post even modest success, which looks like a strong possibility, it could signal the crisis has truly turned the corner, meaning a solid rally may be in store for these stocks for the rest of the year.

Bottom line: Growing signs are emerging that the confidence crisis for US-listed China stocks may be over, with 3 upcoming IPOs providing a strong test of a turning point for the battered sector.

Related postings 相关文章:

◙ Outlook Cloudy As Shanda Refiles for Literature IPO 盛大文学重启赴美IPO计划

◙ Citron Keeps Up Qihoo Assault 香橼继续攻击奇虎

◙ Sharks Continue to Circle China Stocks 在美上市中国企业将持续面临做空和法律诉讼压力

Vipshop Vies For First Internet Listing of 2012 唯品会欲在赴美上市电商公司中力拔头筹

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An online discount retailer named Vipshop has taken an early lead in the race to become the first Chinese Internet company to list in the US this year, while the more established Sohu (Nasdaq: SOHU) has set up a new headquarters for its popular video service, laying the groundwork for its own US IPO for the unit. Meantime in other news for US-listed tech firms, IT outsourcing company Camelot Information Systems (NYSE: CIS) has been hit by a second class action lawsuit over a big drop in its share price, in what looks like another major headache for the company. Let’s look at Vipshop first, a relatively small company that is taking the bold move of being the first Chinese web firm to file for a US IPO this year, with plans to raise up to $125 million. (English article) The company looks similar to many other Chinese e-commerce firms in that it is losing money, posting a loss of $107 million last year amid stiff competition in the space. Considering its money-losing status and lingering broader doubts about the accounting practices of Chinese companies in general, this offering is likely to attract very limited interest and in all likelihood will fall in its trading debut. Investors interested in China IPOs would be better served to look at another company, car rental firm China Auto, which became the first Chinese firm this year to file for a US listing last month with plans to raise up to $300 million. (previous post) Meantime, Sohu has announced it will spend $20 million to set up a headquarters for its popular online video site in Tianjin. (Chinese article) The location of the office in Tianjin, clearly separate from Sohu’s own Beijing headquarters, indicates that Sohu is trying to develop this unit as its own entity and I would expect to see the company file for a potential US IPO for the unit as soon as the second half of this year, putting it alongside rivals Youku (NYSE: YOKU) and Tudou (Nasdaq: TUDO) as a publicly listed firm. Lastly, there’s Camelot, which after being hit by one class action shareholder lawsuit earlier this month, has now been hit by yet another one from another law firm specializing in such suits, after a sharp drop in the company’s stock in 2010 and 2011. (lawsuit announcement) Somewhat surprisingly, the stock hasn’t reacted very much to the lawsuits, and actually rose 2.5 percent on Friday. Perhaps that’s because its shares are already down sharply from the $25 level of about a year ago to their latest close in the $2.50 range. Maybe there’s a good buying opportunity here, though of course that’s assuming that Camelot can survive these 2 lawsuits.

Bottom line: Vipshop will attract weak investor interest as China’s first US Internet IPO of 2012, while Sohu’s latest moves indicate an IPO for its video business potentially by year end.

Related postings 相关文章:

◙ China Auto Wins 2012 Race For 1st US IPO 神州租车抢先成首个赴美IPO的中国企业

◙ Sohu Fails to Inspire With Latest Results 搜狐最新财报缺乏利好激励

◙ Sharks Continue to Circle China Stocks 在美上市中国企业将持续面临做空和法律诉讼压力