Renren.com to launch NPO
Days ago, Renren Inc. submitted its prospectus to U.S. Securities and Exchange Commission (SEC), and formally started its way to IPO in America. Renren planed to raise $640 million with Morgan Stanley, Deutsche Bank AG and Credit Suisse Group AG as its underwriters.
As the prospectus showed, the core assets of Renren for IPO mainly concentrate on Renren.com and Nuomi.com two parts. Insiders believe that, as a real-name SNS (Social Networking Service), the business simulation of “Social network + Group buying” may very likely become Renren Inc.’s trump card.
Economic Information pointed out that Renren’s IPO makes it the pioneer of global SNS enterprises in going public in America, and its $640 million financing plan breaks the record of Chinese technology-oriented enterprises being listed since 2010.
Article in Chengdu Evening expected that once Renren goes successfully on the board, Joseph Chen, its founder and CEO holding 55% shares of the company, will possess a property of over $2.43 billion, i.e. 15.874 billion RMB.
Renren also revealed in its prospectus that it may be subject to infringement claims for its game and other service provided or meet with SNS related patent proceedings.