Baidu IPO Hype
Baidu (BIDU is the proposed ticker) is by far the most hyped Chinese IPO of 2005 thus far. Based on the performance of GOOG, I am not surprised. According to BillsDue the Baidu (BIDU) IPO is expected next week:
Baidu is by far the most popular search engine in China. For a more detailed analysis read this:
Who will be watching the IPO?
- Tons of institutional and individual investors will be watching Baidu and it will likely be many times oversubscribed as an IPO
- Baidu (BIDU) insiders and existing shareholders
- GOOG (they already have a stake in Baidu and may be looking to buy more in the future)
- The RIAA (see the Baidu F1 filing)
- Class action attorneys (pay per click fraud is more common in China) and Baidu (BIDU) is likely to remain the largest player in the Chinese pay per click market.
- Competitors including GOOG, YHOO, SINA, SOHU and Zhongsou
- eBay and Alibaba. Baidu (BIDU) just signed an agreement with PayPal and Alipay competitor 99Bill. From ChinaTechNews: http://www.chinatechnews.com/index.php?action=show&type=news&id=2827
See this link for more information on Baidu (BIDU) and other leaders in the China search market: http://jdmba2b.blogspot.com/2005/06/china-search-market-update.html
Another previous post of mine about Baidu (BIDU): http://jdmba2b.blogspot.com/2005/06/baidu-ipo-is-coming-soon.html
For those of you that want to track the latest SEC filings and amendments for Baidu look here: http://tinyurl.com/ddcp3
Here is the most recent F1 (3rd Amendment): http://tinyurl.com/7eeal
The current anticipated initial public offering price is between US$19.00 and US$21.00 per ADS. I will be watching for future developments next week.