Baidu (BIDU.NASDAQ) benefits a lot form IPO of Qunar.com (QUNR.NASDAQ)
BEIJING, Nov 03, 2013 (Xinhua via COMTEX) --
China's leading search engine Baidu.com
Inc. (BIDU.NASDAQ) is believed to have got a good return from its
investment in online travel unit Qunar.com (QUNR.NASDAQ), which
posted 89.33 percent growth in share price on listing day on Friday.
The IPO of Qunar.com was oversubscribed by 40 times and raised 190
US million dollars. The issuing price was 15 dollars, and the opening
price and closing price reached 28.35 dollars and 28.4 dollars
respectively. After the debut, the market value of Qunar.com reached
3.209 billion dollars.
Baidu became the largest institutional shareholder of Qunar.com on
June 2011 with an investment of 306 million dollars. It holds 54.82
percent share in the online travel unit, which is worth 1.75 billion
dollars at the share price of 28.4 dollars after the debut. That
means the share value of Qunar.com held by Baidu has grown by over
Zhuang Chenchao, CEO of Qunar.com, said Baidu supported Qunar.com
greatly in the road show with its brand image and influence on the US
capital market. He added that Qunar.com would use the money raised
from the IPO in future's acquisition within the travel industry. But
Zhuang did not disclose any acquisition target.
China's travel industry posted rapid development in recent years.
Statistics from market researcher iResearch show that the industry's
total revenue grew from 1.16 trillion yuan in 2008 to 2.57 trillion
yuan in 2012, with an annual composite growth of 22 percent.
Qunar.com earned business revenue totaling 359 million yuan in the
first half of 2013, up 75 percent year on year. Of the amount, 88
percent was from the pay-for-performance advertising sector.
Besides Qunar.com, Ctrip.com International Ltd (CTRP.NASDAQ) and
Elong, Inc. (LONG.NASDAQ) are also China-based online travel
companies that are listed on the US capital market. Meanwhile,
China's leading e-commerce company Alibaba and the Internet giant
Tencent (0700.HK) have raced into the online travel industry.
An industry insider said the online travel companies based on
mobile Internet would become the acquisition targets of Internet
giants. (Edited by Li Xiaoyu, Lixy@xinhua.org)
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