China's YY prices IPO at $10.50 per ADS

Wed Nov 21, 2012 8:58am EST

Nov 21 (Reuters) - Chinese social networking provider YY Inc , which starts trading on Wednesday, priced its initial public offering of 7.8 million American Depository Shares (ADS) at $10.50 each, raising $82 million.

The pricing is at the lower end of the company's expected price range of $10.50 to $12.50 per ADS.

The company said is expects to use the proceeds from the IPO to expand its infrastructure services, product development and working capital needs.

The company's core product, YY Client, a PC-based software that provides real-time access to user-created online groups was launched in China in 2008 and has 400.5 million registered users as of Sept. 30.

YY Inc reported a net loss of $9.4 million on revenue of $88 million for the nine months ended Sept. 30.

Morgan Stanley, Deutsche Bank Securities and Citigroup are the lead underwriters to the offering.

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