UCWeb Not to Consider Listing Soon
GUANGZHOU, Aug 26, 2013 (SinoCast Daily Business Beat via COMTEX) --
UCWeb Inc., the biggest mobile browser in the Chinese mainland, will not consider a listing until it sees valuation reach several billions of US dollars.
Yu Yongfu, chairman and CEO of it, said in an interview recently that the most important significance for it to introduce Jack Ma, chairman of the board of Chinese ecommerce giant Alibaba Group, into its board was to ensure controlling right of its management team. Jack had not only perfect strategic pattern sense but also huge resources and in the future, it would launch more cooperation with Alibaba.
He denied the report that it would continue making preparation for a listing on the US stock market, stating that it was estimated at only over USD 1 billion by Alibaba this time and would consider a listing when the valuation hit about several billions of US dollars.
People in the know disclosed that it saw the board have seven seats in the past and among the seven, three ones were management team members of it. And after introducing Jack as a director, it adjusted the board, reducing the size to five in total. And among the five, one was Jack and three were management team members of it. Thus it had become a focal point who the remainder would be. Some industry observers believed that the one would be Lei Jun, founder of Xiaomi Technology Co., Ltd., a start-up mobile phone maker in the market, while others thought that the one would be a representative from GGV.
Available information shows that it received CNY 4 million worth angel investment from famed individuals including Lei in December 2006. And on August 2007, it gained a total of USD 10 million from two venture capital firms, namely Morningside Ventures and Ceyuan. It formally introduced financial institutions including Alibaba as a strategic investor in June 2009 and in March 2010, it introduced Nokia Growth Partners as a strategic investor. In addition, it entered into a partnership with GGV, a renowned venture capital firm, in the meantime. And in line with Yu, Morningside Ventures and Nokia Growth Partners quit it when Jack was introduced as a director.
Chen Zhigang, an Internet expert, pointed out that it was under rising pressure from fiercer competition with Internet giants including Chinese search engine giant Baidu, Inc. (NASDAQ; BIDU) in the domestic market and its UC + super app platform would be challenged by a light application strategy of the US-listed firm. And in the US market, it saw share reach only about one percent currently.
(USD 1 = CNY 6.12)
Source: www.nbd.com.cn (August 26, 2013)
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