China's 500.com jumps 54% on NYSE debut

500.com earlier raised about $75 million in its IPO, after selling 5.8 million American Depository Shares (ADS) at $13 per apiece, above the indicative price range of $9-11.

The first trade opened under the symbol WBAI at $20, it then peaked at $21.85  before it closed trading at $20.01.

According to regulatory filing, a vehicle controlled by Vision Knight Capital invested in $20 million of exchangeable notes that entitled it to an equity stake in 500.com upon completion of the IPO. Sequoia Capital, meanwhile, purchased shares totalling $15 million from a concurrent private placement.

Previous VC investors in 500.com include IDG-Accel China Growth Fund, which is managed by IDG Capital Partners, and Susquehanna Asia Investment. Their holdings were redeemed by the company between 2010 and 2012.

500.com claims to be China's leading online sports lottery platform, operating under the 500wan brand. It is one of two companies authorized by the Ministry of Finance to provide online lottery sales services on behalf of the China Sports Lottery Administration Center. It previously offered sports and welfare lottery products but ceased on operations in the latter category last year following a regulatory review.

500.com had 18.4 million registered user accounts - of which 800,000 were active accounts - as of September 30. Total purchases for the period came to RMB2 billion ($322.8 million), up from RMB1.8 billion in 2010, although spending has fallen from its peak of RMB2.5 billion in 2011 due to the withdrawal of welfare lottery products.

The company posted net revenues of RMB171.5 million in 2012, down 26.2% year-on-year. Net income fell 68.7% to RMB4.2 million. However, performance in the first nine months of 2013 has been strong, with revenues reaching RMB163.4 million and net income RMB20.6 million.

This is the second US IPO by a VC- backed Chinese company in a week after app developer Sungy Mobile - which is invested by IDG Capital Partners, JAFCO, WI Harper and China Broadband Capital (CBC) - raised $78.54 million.

500.com is the sixth VC-backed Chinese company to go public in the US this year. Others include 58.com, Qunar, LightInTheBox and Montage Technology Group. The number of Chinese companies listing in the US plunged from a high of 40 in 2010 to just two in 2012 after a rash of accounting scandals.

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• Topics
• Greater China
• North America
• Venture
• Technology
• IPO
• Sequoia Capital
• Vision Knight Capital
• USA
• Technology
• China