China’s 58.com Inc., an online marketplace for merchants and consumers in about 380 cities, saw its initial public offering price above expectations.
The company agreed to sell 11 million American depositary shares–which trade on a U.S. exchange like common stock–for $17 each, according to people familiar with the pricing, valuing the deal at $187 million before underwriters potentially buy more shares. The company had expected to sell 11 million ADSs for $15 to $16 apiece, according to a regulatory filing.
The last few years, 58.com has seen a rapid increase in revenue drawn from listing services fees such as prominent placement on its site or collaboration with third-party Internet companies in China. Such services account for the vast share of its top line. 58.com is seeking proceeds mainly for general purposes such as product development, engineering, sales and marketing.
The ADSs are slated to begin trading on the New York Stock Exchange Thursday under the symbol “WUBA.” Morgan Stanley led the deal with Credit Suisse Group AG and Citigroup Inc.
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