November 9, 2017 / 2:04 AM / a month ago

Chinese search engine Sogou's U.S. IPO priced at $13/ADS

(Reuters) - Sogou Inc (SOGO.N), China’s second-largest search engine, said its initial public offering was priced at $13 per American Depositary Share (ADS), raising $585 million, .

The 45 million ADS offering, with each ADS representing one Class A ordinary share, was priced at the top end of the expected range of $11-$13.

The stock will be listed on the New York Stock Exchange on Thursday under the symbol “SOGO”.

Chinese tech giant Tencent Holdings (0700.HK), a major Sogou shareholder, uses Sogou Search as the default search engine in its Mobile QQ browser and qq.com site.

Sogou is a unit of China’s Sohu.com Inc (SOHU.O), an internet service company that includes search and gaming platforms. Sohu.com will remain as Sogou’s controlling shareholder after the IPO.

Underwriters will have the option to buy up to an 6.75 million more shares to cover over-allotments, Sogou said.

    Proceeds from the offering will be used for research and development and marketing purposes, Sogou said in a filing.

    Beijing-based Sogou, which competes with Baidu (BIDU.O) and Alibaba’s (BABA.N) UCWeb, reported a net income of $66.7 million for the nine months ended Sept. 30, compared with $45.4 million for the same period a year earlier.

    J.P. Morgan, Credit Suisse, Goldman Sachs and CICC were among top underwriters to the offering.

    Reporting by Nikhil Subba and Bhanu Pratap in Bengaluru; Editing by Peter Cooney and Gopakumar Warrier

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