Baixing announces $2 million US share placement
27 Jan 2017
China’s listed classifieds platform Baixing.com announced yesterday that it will issue one million new shares to raise RMB 14 million ($2 million U.S.) in fresh capital.
A Baixing representative indicated that the funds will be spent on the development and marketing of software-as-a-service infrastructure (SaaS). The move comes on the back of the company’s acquisition of Shanghai Hechen Information Technology for RMB 25 million earlier this month (our report here).
Founded in 2005, Baixing currently has a major presence in the online jobs, auto, real estate, pets and household services markets in China. It claimed monthly active users of more than ten million from 367 cities in June 2014.
Baixing is the only serious, independent competitor left to Chinese classifieds giant 58.com (NYSE: WUBA), after its acquisition of Ganji in April 2015.
Baixing listed on the National Equities Exchange and Quotations (NEEQ), China’s over-the-counter (OTC) market, in March 2016. To date, it is the company in the NEEQ which has reached a market capitalization of RMB 40 billion in the shortest period. This is a figure which is now pushing toward RMB 50 million.
Share placements are relatively common in the NEEQ, which has always functioned as an alternative means to raise institutional capital for listed companies. Baixing stocks are currently trading at RMB 14 per share.