China-based microblogging platform Sina Weibo has raised $285.6m in an initial public offering, despite floating at the bottom of its range.
Weibo issued 16.8 million American Depositary Shares priced at $17.00 each, at the foot of the $17-19 range set only three days before.
China-based e-commerce company Alibaba bought more than 29 million shares in the offering, increasing its stake from 19.3% to 32% in the process, while parent company Sina sold 20.3 million shares generating more than $345m. Weibo will also use $250m of the proceeds to repay outstanding loans to Sina.
In addition to increasing its stake for less cash than expected, Alibaba, which is planning its own IPO later this year, will also take solace from the way Weibo’s stock has surged since the company floated on 17th April.
In the two subsequent trading days its stock reached $24.11 on the first day and closed at $22.61 yesterday. Alibaba is expected to raise up to $15bn when it goes public in the US later this year.