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Do you Qihoo? Chinese Internet IPO goes nuts

By David Goldman, staff writer


NEW YORK (CNNMoney) -- Chinese Internet company Qihoo 360 went public with a bang Wednesday morning on the New York Stock Exchange, with shares immediately doubling at the start of trading.

Qihoo 360 (QIHU) priced its stock at $14.50 a share, but shares opened at $27 and quickly soared as high as $33.40. The company raised more than $175 million in its IPO.

The Internet software company sells antivirus software and security services. it also develops Web-based games and makes the second-most used Internet browser in China, behind Microsoft's (MSFT, Fortune 500) Internet Explorer.

With 300 million Internet users in China -- a number that's rapidly rising -- second place is an attractive position to be in. Qihoo attracted significant interest from U.S. venture capital firms, receiving backing from big-name VCs such as Sequoia Capital and Highland Capital Partners.

Last year, Qihoo took in $58 million in sales and made a profit of $8.5 million. Revenue was up 79%, and its profit more than doubled from 2009.

That the IPO was a roaring success wasn't a surprise. Two other Chinese Internet companies, Youku.com (YOKU) and Dangdang (DANG) both went sky-high after their December 2010 IPOs. Shares of Chinese search leader Baidu (BIDU) have risen 41% this year. To top of page

Index Last Change % Change
Dow 15,688.26 -226.48 -1.42%
Nasdaq 4,230.07 -53.52 -1.25%
S&P 500 1,826.95 -24.91 -1.35%
Treasuries 1.63 -0.07 -4.28%
Data as of 10:58am ET
Company Price Change % Change
Bank of America Corp... 11.34 -0.64 -5.38%
Cisco Systems Inc 24.33 1.82 8.09%
Chesapeake Energy Co... 1.65 -0.05 -2.94%
General Electric Co 27.87 -0.43 -1.52%
Mylan NV 40.64 -9.91 -19.60%
Data as of 10:43am ET

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