The filing by Weibo scales back the amount indicated in March 2014, of up to USD 500 million. The initial public offering (IPO) will include 20 million shares, with an option for three million additional shares if there is enough demand. The price per share was set at a range of USD 17-USD 19 in the updated filing with the US Securities and Exchange Commission.
According to the source, a unit of Alibaba has agreed to buy three million shares in the IPO, with the possibility to increase its stake up to 30% of the total capital of the company, now at 18%.
The funds from Alibaba will be used to repay loans from Sina, according to the filing, although Sina would still hold 56.9% of the capital after the IPO, down from 79.9%.
In recent news, Alibaba, a China-based ecommerce platform and provider of B2B services, extends integration with Sina Weibo in what concerns 8 additional aspects, according to www.chinainternetwatch.com.
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