Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

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

Search for Jobs

Index Last Change % Change
Dow 19,170.42 -21.51 -0.11%
Nasdaq 5,255.65 4.55 0.09%
S&P 500 2,191.95 0.87 0.04%
Treasuries 2.39 -0.05 -2.09%
Data as of 3:59pm ET
Company Price Change % Change
Bank of America Corp... 21.23 -0.27 -1.26%
Chesapeake Energy Co... 7.23 0.18 2.55%
Ford Motor Co 12.24 -0.19 -1.53%
Freeport-McMoRan Inc... 15.42 0.39 2.59%
Cisco Systems Inc 29.25 -0.20 -0.68%
Data as of Dec 2

Sections

Increased health coverage through Obamacare and greater use of health care services accounted for the nearly 6% rise of national health spending in 2015, which approached $10,000 per person. More

Facebook admits it messed up more ad metrics than previously thought, potentially eroding its trust and relationship with marketers and publishers. More