Weibo Prices Public Offering of $800 Million Notes; Stock Jumps 3%

Shares in the company, China's Twitter, ended 3 percent higher Thursday after it priced the public offering of convertible senior notes.

Author: Belinda Zhou   

Weibo Corp. (Nasdaq: WB), China's Twitter, announced the pricing of its public offering of $800 million convertible senior notes, sending its stock up 3 percent to $43.90 per American depository share Thursday.

The company said the 3.5 percent notes due 2024 are expected to be listed on the Singapore Exchange Securities Trading Ltd.

Net proceeds from the offering in the amount of approximately $793 million after deductions will be used for general corporate purposes, according to the statement.

Weibo claimed the offering was oversubscribed four times, exceeding the recent bond transactions of Tencent Holdings Ltd. (HKEX: 0700) and Baidu Inc. (Nasdaq: BIDU). Fidelity Fund, BlackRock, and Lord Abbett & Co. LLC were among the institutional investors signing up on the deal.

Goldman Sachs (Asia) L.L.C is the sole bookrunner on the offering. Co-managers are Hong Kong and Shanghai Banking Corporation Ltd. and Industrial and Commercial Bank of China (Asia) Ltd.

In an earlier statement, Weibo forecast lower-than-expected guidance for the second quarter. It said it expects to generate revenue in the range of $427 million to $437 million, an increase of 7 percent to 10 percent year-over-year, which would be about 10 percent below the $483.9 million estimate from Wall Street analysts.