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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 21,457.59 146.93 0.69%
Nasdaq 6,232.83 86.21 1.40%
S&P 500 2,440.86 21.48 0.89%
Treasuries 2.22 0.02 1.05%
Data as of 3:47pm ET
Company Price Change % Change
Bank of America Corp... 23.92 0.65 2.79%
Advanced Micro Devic... 13.23 -0.17 -1.28%
Ford Motor Co 11.10 0.03 0.23%
Micron Technology In... 32.17 0.51 1.60%
Chesapeake Energy Co... 4.88 0.08 1.67%
Data as of 3:32pm ET

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