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Weibo Prepares To Price IPO Ahead Of Its Nasdaq Debut

Weibo Prepares To Price IPO Ahead Of Its Nasdaq Debut
[Image: Flickr user bfishadow]

Weibo, Twitter’s counterpart in China, is expected to price its initial public offering Wednesday and begin trading on the Nasdaq the next day. If the Chinese microblogging site offers shares between $17 and $19, as it suggested in a regulatory filing earlier this month, its valuation could reach $3.9 billion.

Ahead of this pricing, Weibo released its financial data for the first quarter of the year, reporting a $47.4 million net loss. This is more than twice the $19.2 million loss experienced in the same period the year prior, largely driven by a change in fair value of investor option liability and stock-based compensation expenses.

Weibo reported 143.8 million monthly active users as of March, compared with Twitter’s 241 million in December. According to Bloomberg, Weibo reaps $1.46 in revenue per user, roughly half of Twitter’s $2.76 per user.

Some investors think Weibo could be undervalued because its valuation at $17 to $19 a share is 18 to 21 times the revenue it reported last year. In comparison, Twitter’s market capitalization of $25.8 billion is 39 times its sales, and its stock price has gained 75% since its IPO in November.

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