September 20, 2010 / 5:59 PM / 8 years ago

UPDATE 1-SouFun shares dip after red-hot IPO

* SouFun shares fall over 6 pct after red-hot IPO

* Share fall due to profit-taking: analyst

* PE firms finalize plans to grow their stakes

By Clare Baldwin

NEW YORK, Sept 20 (Reuters) - Shares of Chinese online real estate website SouFun Holdings Ltd (SFUN.N) fell 6 percent on Monday as investors locked in profits from a more than 70 percent run-up in its market debut on Friday.

Separately, private equity owners General Atlantic LLC and Apax Partners said they have finalized plans to buy shares held by Australian phone company Telstra Corp Ltd (TLS.AX).

Shares of Beijing-based SouFun were trading down 6.1 percent at $68.99 in afternoon dealings on the New York Stock Exchange.

“They are down today because of profit-taking. There is some reconsideration after what happened on Friday,” said Josef Schuster, founder of Chicago-based IPO research house IPOX Schuster LLC.

    SouFun, whose IPO came amid fears that China’s property sector could be too hot, saw a 72.9 percent share gain on its first day of trading on Friday. The company sells real estate-related marketing and listing services and as of June 30 it covered 106 Chinese cities, according to its prospectus. [ID:nN17132661]

    Going into its IPO, SouFun was 51 percent owned by Telstra, which in August had agreed to sell its stake to General Atlantic and Apax.

    Telstra sold a 9 percent stake in the IPO. General Atlantic and Apax on Monday said they would invest more than $163 million each to acquire 19 percent stakes in SouFun from Telstra.

    Both General Atlantic and Apax are buying at the IPO price of $42.50.

    General Atlantic Managing Director Jeff Leng and Apax partner and co-head of the global media team Tom Hall will join SouFun’s board. (Reporting by Clare Baldwin, editing by Gerald E. McCormick)

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