* At the high, company valued at about $2.2 bln
* Raises about $168 mln from the offering
(Adds opening price, updates market capitalization)
May 8 Cheetah Mobile Inc's shares rose
about 13 percent in their market debut, valuing the Chinese
security software maker at about $2.2 billion, after its initial
public offering was priced near the top end of the expected
Earlier on Thursday, the company said its offering of 12
million American depositary shares (ADSs) was priced at $14
each, raising $168 million .
Cheetah had said it expected its IPO to be priced between
$12.50 and $14.50 per ADS.
The Beijing-based company provides security and optimization
software used both in smartphones and PCs. Its apps such as
Clean Master and Battery Doctor are popular on Google Play.
Cheetah's shares opened at $15.25 and touched a high of
$15.89 in early trading on the New York Stock Exchange.
The company is being spun out of software maker Kingsoft
Corp Ltd, which will retain control with about 54
percent of Class B shares and 4.7 percent of Class A shares.
Tencent Holdings Ltd, currently China's largest
listed internet company and owner of the mobile messaging app
WeChat, is the second-biggest shareholder in Cheetah with an 18
Cheetah's app Clean Master, which boosts memory in
smartphones and protects users' data, had 237.3 million
downloads and 72.9 million average daily active users in March,
the company said.
The company also makes an internet browser for mobile phones
and PCs. The company's rivals include Qihoo 360 Technology Co
, another U.S.-listed Chinese company.
Cheetah's revenue more than doubled in 2013, while its
profit surged 530 percent. The company had net income of $3
million and revenue of $50.8 million in the quarter ended March
Net proceeds from the offering will be used for marketing
and other corporate purposes, Cheetah said in the filing.
Morgan Stanley, JPMorgan and Credit Suisse were among the
underwriters for the IPO.
Chinese companies are flocking to the U.S. market in their
biggest numbers since 2010, encouraged by high investor demand
for technology start-ups.
Some 30 Chinese companies could list in the United States
this year, according to investment bankers interviewed by
Listings by overseas companies accounted for 16 percent of
the 68 U.S. IPOs this year as of March 18, raising $1.9 billion.
Alibaba Group Holding Ltd IPO-ALIB.N filed for its hugely
anticipated IPO on Tuesday. E-commerce company JD.com Inc
IPO-JD.O is also likely to go public soon.
Twitter-like messaging service Weibo Corp had a
successful debut in April, with its shares soaring as much as 19
percent when they listed.
(Reporting by Avik Das in Bangalore; Editing by Sriraj
Kalluvila and Kirti Pandey)