Marbridge Daily

<- May 03, 2011 ->

Renren Raises IPO Share Price

SEC, 4/29/11

Beijing-based social networking site operator Renren Inc., formerly Oak Pacific Interactive, has amended its IPO filing with the U.S. Securities and Exchange Commission to raise its initial share price range to between USD 12 and USD 14 per American Depositary Share (ADS).

Renren expects to receive net proceeds of approximately USD 628.8 mln from this offering and the concurrent private placements, or USD 726.1 mln if the underwriters exercise in full their over-allotment option to purchase additional ADSs, after deducting underwriting discounts and commissions and estimated offering expenses payable by Renren, assuming an initial public offering price of USD 13.00 per ADS, the midpoint of the estimated initial public offering price range shown on the front cover page of this prospectus.

Renren added a dilution item to its risks section, stating that those who purchase ADSs in this offering will pay more for ADSs than the amount paid by existing shareholders for their Class A ordinary shares on a per ADS basis. As a result, new purchasers will experience immediate and substantial dilution of approximately USD 10.25 per ADS, representing the difference between the assumed initial public offering price of USD 13.00 per ADS, the midpoint of the estimated initial public offering price range shown on the front cover page of this prospectus and Renren's pro forma as adjusted net tangible book value of USD 2.75 per ADS as of December 31, 2010, after giving effect to the automatic conversion of preferred shares immediately prior to the completion of this offering and the net proceeds to Renren from both this offering and its issuance of a total of 25,384,612 Class A ordinary shares through concurrent private placements. In addition, new share purchasers may experience further dilution to the extent that ordinary shares are issued upon the exercise of share options.

Renren added that a portion of the proceeds would specifically be used to expand the company's e-commerce group buy site Nuomi.com.

To view the amended F-1/A filing, please click here. For more information on this topic, please see "Renren Q1 2011 Loss Reaches USD 26 Mln," MD 4/29/11 issue.

 

Keywords:  e-commerce  Internet  IPO  Renren  Nuomi  group buying  SNS 

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