21Vianet Group, a China-based internet data centre provider part-owned by equipment company Cisco, has raised nearly a quarter more than expected in its $195m flotation on the Nasdaq stock exchange.
21Vianet had planned to raise $158.7m by issuing 11.5 million American depositary shares (ADSs), each representing six class A ordinary shares, according to its regulatory filing.
Instead, it priced 13 million ADSs at $15 each and closed its first day of trading up 25%.
Investment banks Morgan Stanley, Barclays Capital and JP Morgan underwrote the initial public offering (IPO) and can still sell a further 1.95 million ADSs if demand is strong enough.
Cisco owned 5.3 millions shares, 2.2% of 21Vianet, but was diluted to 1.7% after the IPO. Cisco paid $5m for its shares at the start of the year, separate to a $30m series C round raised from its venture capital investors.
VC firms Matrix Partners China, Granite Global Ventures, Meritech Capital Partners, Trinity Venture and WI Harper own shares in 21 Vianet as well as Smartpay and Purple Communications.
In 2008, China passed the US as the largest internet market in terms of users and is projected to grow from 389 million users in 2009 to 558 million users in 2014, representing a compund annual growth rate of 7.5%, according to Euromonitor International.
The company posted a $37m net loss last year on $79m of revenues.