RenRen, a China-based social networking service backed by Japan-based internet group Softbank, plans to raise up to $584.1m in its New York flotation due Thursday.
RenRen plans to offer 53.1 million American depository shares (ADS) at between $12 and $14 each – up from $9 and $11 each in an earlier filing, underwritten by investment banks Morgan Stanley, Deutsche Bank and Credit Suisse, according to its regulatory filing. Shareholders will sell 10.2 millions ADSs, each representing three class A shares, and RenRen issue 42.9 million ADSs. A further 8 million ADSs are available if demand is strong enough with an estimated company valuation of about $4bn.
Softbank owns 39.6% of RenRen after buying more than a third of the company in 2008’s series D round for $415m and will be diluted to 34.2% after the initial public offering.
Previously, RenRen had raised $58m from venture capital firms Accel Partners, DCM, General Atlantic, Legend Capital (the corporate venturing unit of computer maker Legend) and Technology Crossover Ventures, according to news provider PEHub.