China portals eye Nasdaq market

Mainland internet portals are rushing to tap the US market after the successful Nasdaq debut of recruitment portal operator 51job.

Chinese tourist portal eLong has filed a preliminary prospectus with the Securities and Exchange Commission for a Nasdaq listing to raise between US$50.4 million and $59.1 million, with Deutsche Bank handling the deal. It is offering 3.62 million American depository receipts (ADRs) while its existing shareholders will sell 761,921 ADRs at $11.50 to $13.50 each.

China Finance Online, the mainland version of Bloomberg, also hopes to ride on investors' growing interest in China internet plays by selling 6.2 million ADRs at US$10 to $12 each to raise between $62 million and $74.4 million.

51job enjoyed a strong debut last month with a gain of 51.07 per cent to US$21.15 after it fixed the issue price at $1 higher than its offer range, or at $14, due to hot demand.

China Finance has also jumped on the Nasdaq bandwagon. After a global roadshow that began on Wednesday, its offering will be priced on Thursday in the US with the stock trading the following day.

Led by JP Morgan, the offering has been well-received among investors, with one source saying the book was covered in a few hours of the offer being launched. But some fund managers were not so optimistic, insisting China Finance could not be compared with 51job.