A unit of Baidu Inc (ADR)(NASDAQ:BIDU) is looking to raise $125 million through an IPO in the US as there are investors which strongly favour Chinese stocks.
Qunar Cayman Islands, a firm providing online travel services, would be the fourth firm based in China looking at listing on the US bourses and the offering would be the biggest one by a Chinese firm in the last two years.
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Two years back, a number of reports concerning irregularities in US-listed Chinese firms emerged bringing a wave of delisting as well as high-level talks between Beijing and Washington over handing of key documents which continue today.
Investors have not forgotten those issues but they also see that there is money in China. The technology-heavy Nasdaq’s Composite Index has surged by 26 percent in the current year and the firms from China such as Baidu are up almost 60%. This is huge as compared to a 2 percent rise in the Hang Seng index as well as 13.2 percent rise in MSCI’s world equity index
Alibaba Group, the country’s biggest e-commerce company, would be looking at an IPO of about $15 billion in US.
The number of new firms which got listed from China in 2010 peaked at 40, raising about $4 billion. But, this number has fallen significantly in the next two years.
Baidu acquired a majority stake in Qunar and Chinese e-commerce is expanding at a breakneck speed.
Leading communications providing company Alcatel Lucent SA (ADR)(NYSE:ALU)’s shares surged 5.7% after the firm announced deployment of IP-based mobile backhaul network for supporting Korea-based SK Telecom’s LTE-Advanced services. This has led to consistent increase in Alcatel’s shares.
The firm’s solution would be linking SK Telecom’s cell sites which is likely to be deployed in October. The scope entails Alcatel to provide routers including 7750 Service Router, 5650 Control Plane Assurance Manager and the Alcatel-Lucent 5620 Service Aware Manager.
SK Telecom is looking to give premium broadband services to customers, which would be ten times quicker than conventional network.