The 2011 IPO of Qihoo comes straight from the playbook of the dot-com 1990s. Qihoo 360 (NYSE: QIHU), which is a Chinese provider of antivirus software, originally set the price range of its deal at $10.50 to $12.50. Then Qihoo increased it to $13.50 to $14.50. With demand at 40 times the amount being raised, the final price of the QIHU stock IPO came to $14.50.
Well, QIHU investors thought that price still too low. So far in today’s trading, the shares of Qihoo 360 are trading at $29. With 175 million shares outstanding, the market value of the company is a whopping $5 billion overnight.
Why all the excitement? Well, Qihoo 360 is the #3 Internet company in China, with a user base of 339 million. That’s an 85.8% penetration rate. Read