Beijing on October 18 morning news, China ‘s largest city local life service platform 58 with the U.S. Securities and Exchange Commission filed an updated prospectus . The prospectus shows that this 58 city plans to issue 11 million depositary shares , in addition to through the ” green shoe plan ” an additional 1.8 million ADS, according to its issue price range of $ 13-15 , corresponding to the scale of financing can be estimated at 1.7 – $ 190 million . A source revealed that the 58 fastest growing city in early November will be listed for trading .
This means that the amount of financing of at least about $ 170 million compared with the previous forecast of $ 150 million scale has improved. And if we can release in accordance with the upper limit of $ 15 , you can reach $ 190 million in financing scale than previously disclosed the maximum amount of financing increased by approximately 27% , which may explain the 58 city U.S. investors very positive feedback , reflects the company’s business model and growth prospects recognition.
Prospectus shows that 58 city financial data are increasingly turn for the better . Since the second quarter of this year , 58 city has been profitable , and the operations and free cash flow positive for four consecutive quarters . 2013 second quarter , total revenue grew by 61% year on year . From 2010 to 2012, the company’s turnover increased from $ 11 million $ 42 million , $ 87 million , three-year compound annual growth rate of 185% . After the early market development and brand introduction , the company is expected to enter the stage of steady earnings .
Early September this year , 58 city beat famous American classifieds site Craigslist, monthly unique visitor traffic ranks first in the world , and it is 2005 Craigslist CEO Yao Jinbo 58 city imitation when starting a business goal .
In previous years, this company now looks cool but is subject to funding strand breaks, and other negative news flow down troubled spam flooding and its sole business model has become an indisputable fact. Online marketing and membership alone earn income single business model difficult to get capital continued pursuit.
But from a global perspective , classified information and on a wider range of life service is an effective way to promote the world , foreign profit margins as high as 50% similar sites , by contrast , 58 city also has vast room for improvement.
Third party survey data show that in 2012 , China’s online marketing market size of $ 12.1 billion , in 2017 is expected to increase three times to $ 39.3 billion , of which online classifieds market in the next five years is expected to grow 9 -fold , reaching nearly 2.5 billion dollar industry. According to research firm iResearch statistics, 58 city monthly unique visits nearing 130 million , ranking China first a service platform for local life , nearly 4 million active businesses , posting monthly volume reached 56 million or so, published daily nearly 2 million of new information .
According to the updated prospectus shows that 58 city DCM existing VC shareholders will purchase $ 15 million IPO shares for additional investment , and continued locked six months , DCM currently holds 16.6% of shares 58 city . In addition, according to the prospectus disclosure , the company will introduce Sina and former Chief Financial Officer Mr. Yu Zhengjun field of Internet Capital Markets analyst , Mr. Ji Weidong has been an Independent Director.