Bloomberg | March 2, 2011 | Zijing Wu and Serena Saitto
Shenzhen Xunlei Network Technology Ltd., the Chinese video and music file-sharing company partly owned by Google Inc. (GOOG), is planning to raise about $200 million in an initial public offering in the U.S. this year, according to two people with knowledge of the situation.
The company has hired underwriters including JPMorgan Chase & Co. (JPM) and Deutsche Bank AG (DBK) for its IPO, said the people, who declined to be identified because the plans aren’t public.
Xunlei may follow Chinese Internet companies including Youku.com Inc. (YOKU) and E-Commerce China Dangdang Inc. (DANG) in raising capital from initial share sales in the U.S. Xunlei had about 190 million online video users at the end of last year, and also offers other Web services including games, according to Tang Yizhi, an analyst at Analysys International in Beijing.
“The company’s strength is in its technology – it’s able to serve up high-definition videos to users,” Tang said by telephone. “It has more diversified services than a site like Youku, which is focused on online videos.”
Youku, China’s biggest online video site, surged 161 percent of its first day of trading in New York on Dec. 8, the largest gain for a U.S. IPO since the 2005 debut of Baidu Inc., China’s most-popular search-engine.
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