Beijing-based Renren Inc. (NYSE: RENN) made its debut on the New York Stock Exchange today, soaring as much as 40% after raising $743.4 million. The Chinese social networkingInternet company sold 53.1 million American depositary receipts at $14each, the high end of the proposed range.
Being the first social networkingcompany to take the plunge into the public U.S. market, Renren’s IPO was a success, even though the company is not profitable and has only 31million active users. Competition is tough, and this company is going to have to stay on its toes to keep and increase its users. The companyalso lowered its growth numbers since first filing to go public and dueto allegations of fraud in one of its other companies, the head of itsaudit committee resigned from the company’s board earlier this week. The company had revenues of $76.5 million in 2010 with a net loss of $61.2million. Investors in Renren are also allowing Alibaba Group, ChinaMedia Capital and CITIC Securities to buy $110 million worth of sharestoday through a private placement.
The company is China bases socialnetworking Internet platform that enable its users to connect andcommunicate with each other, play online games, share information anduser-generated content, shop for deals, listen to music, etc. It aims to redefine the social networking experience and to revolutionize the waythat internet users connect, communicate, entertain and shop in China.Its platforms include Renren.com, which is its main social networkingWeb site; Game.renren.com, which is its online games center; Nuomi.com,which is a leading social commerce sites in China; and Jingwei.com,which has recently been launched for professional and business SocialNetworking.